Oil Price Structure Flashes Fears of Oversupply

Oil Price Structure Flashes Fears of Oversupply

The oil price structure has started to slowly shift as prompt futures premiums are softening compared to later-dated contracts, signaling that the market believes supply would be plentiful as soon as peak summer travel season ends.  The rise in supply from OPEC+ producers, as well as from Latin America and Europe, has eased the backwardation in the oil market in recent weeks, analysts and traders told Reuters on Thursday.   The backwardation str…

Oil Price Structure Narrows, Premiums Fall as Supplies Rise, Summer Demand Ends - Energy News, Top Headlines, Commentaries, Features & Events

Summary Backwardation for Brent, WTI 6-month time spreads narrow Brent’s premium to Dubai lowest in 4 months Spot premiums for Oct-loading Dubai, Oman slip to month’s low Reuters) – Premiums for prompt benchmark oil prices globally are falling compared with those in future months on rising output from the Middle East, Latin America and Europe, ...

IEA predicts lower oil prices in 2026 due to oversupply

The International Energy Agency (IEA) has once again lowered its global oil demand growth forecast for 2025 to 680,000 barrels per day (bpd), down from previous estimates of around 700,000 bpd. This reflects oversupply and weak consumption across major economies like China, India, and Brazil. This marks the slowest demand growth since 2009, excluding the impact of Covid-19. Simultaneously, the IEA raised its supply forecast significantly, expect…

As summer demand ends, oil market shifts to oversupply

Global oil prices retreat Opec+ increases output Refinery runs will decline Premiums for prompt benchmark oil prices globally are falling compared with those in future months on rising output from the Middle East, Latin America and Europe, just as peak summer demand ends, traders and analysts said on Thursday. Easing concerns that the US could impose more sanctions on Russia and further disrupt oil supplies are also weighing on oil prices, they …