19 Jun 2015
Risk for oil price tilted to the downside – KBC Bank
FXStreet (Barcelona) - The KBC Bank Research Team shares their observations on the oil market and further see downside risks ahead for oil prices.
Key Quotes
“The oil price was only little changed yesterday - the front-month contract on Brent (ICE) settled at 64.3 USD/bbl, i.e. by about 0.6% higher than on the day before. Depreciating US dollar was probably the main driver of yesterday’s price growth.”
“Meanwhile, North Sea oil spreads show oil is abundant in the Atlantic basin. Contango in the short-end of the CFD curve is the steepest since early April this week; contango in the short-end of futures forward curve (ICE) has also been deepening in the last couple of weeks. This supports our view that risks for the oil price are skewed to the downside, especially in combination with an uncertainty around Greece.”
Key Quotes
“The oil price was only little changed yesterday - the front-month contract on Brent (ICE) settled at 64.3 USD/bbl, i.e. by about 0.6% higher than on the day before. Depreciating US dollar was probably the main driver of yesterday’s price growth.”
“Meanwhile, North Sea oil spreads show oil is abundant in the Atlantic basin. Contango in the short-end of the CFD curve is the steepest since early April this week; contango in the short-end of futures forward curve (ICE) has also been deepening in the last couple of weeks. This supports our view that risks for the oil price are skewed to the downside, especially in combination with an uncertainty around Greece.”