18.07.2014 - Commodities Face Back End Pressure
The Oil market backwardation has narrowed significantly over the past month and the forward discount on oil is now at the lowest level since 2012. Libya’s imminent return to the market as well as the insurgence in Iraq have been key forces stirring up the market. The move has been passed on to oil product curves as well as base metal curves. For some time now the oil market forward curve has mainly been driven by movements in the front end of the curve. Most recently the Iraqi insurgence pushed the oil price to the highest level in nine months. However, concerns over the unrest quickly eased and the price fell back again. The drop was further exacerbated by the news that Libya after a year of shutdown looks ready to restart exports...............................................Full Article: Source
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