Futures in New York fell below $106 a barrel on Friday and are down almost 9% this week
Brent has been as high as $139 a barrel and as low as $105 this week.
Brent remains deep in a bullish backwardation structure, where near-dated contracts are more expensive than later-day ones, indicating concerns about tight supply.
The global benchmark’s prompt spread was at $3.99 a barrel, compared with $1.39 at the start of last month.
The cartel, which counts Russia as a key member, has resisted calls from consumers to pump more, arguing that the surge in prices is driven by geopolitical tensions rather than a supply shortage.
34 mins ago
https://www.msn.com/en-za/news/other/oil-s-sizzling-rally-takes-a-breather-after-tumultuous-week/ar-AAUUAGx
Reminder:
Department of Energy forecasts oil surpluses as far as the eye can see
Jan. 11, 2022
https://seekingalpha.com/news/3787240-department-of-energy-forecasts-oil-surpluses-as-far-as-the-eye-can-see