Oil Demand Picture Slightly Stronger In China As Supply Showing Signs Of Tightening

Oil demand and supply functions are at work supporting the front end pricing, but will it last? The front end of the Brent oil futures curve will not likely result in sustained backwardation, a Barclay’s commodity report notes, as oil is seeing not only supply weakening but also demand, in large part from China, providing occasional energy to support prices. Also see Andy Hall: Oil Prices Could Be Headed To $80 In Next 12 Months Various “unplanned outages” are tightening oil supply as futures pricing curve inverts in and out of normalization In regards to oil supply, the “likelihood of unplanned…