WTI Crude Returns to Backwardation for the First Time in 3 Years

A prominent feature in the oil market yesterday was that WTI crude oil closed at backwardation for the first time in 3 years. Moreover, the spread between WTI and Brent crude also narrowed to below 20/bbl. This was despite API's report that crude oil inventory climbed more than expected last week. Concerning the financial market as a whole, profit-taking was seen ahead of the EU summit. As we mentioned yesterday, the potentially positive news should have been priced in over the past weeks.

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WTI Crude Returns to Backwardation for the First Time in 3 Years