- West Texas Intermediate futures continue to rise Wednesday morning after closing yesterday at $67.72, the highest level since October 2018
- On Tuesday, OPEC decided to continue with its previous plan of reletting oil back onto the market through July
- The decision to not revaluate its previous decision came as the group affirmed its view of a strong demand recovery for 2021
- A key time-spread for WTI hit its widest mark since both futures started trading
- WTI’s December 2021 contract reached its highest premium to December 2022 at $5.21/Bbl
- The spread is a favored trade for hedge funds to bet on the oil market (Bloomberg)
- AEGIS notes that a premium for near-term contracts shows intense interest in securing supply
- WTI’s M6-18 spread, or month six minus month 18, is at a $5.00/Bbl difference, slightly lower than the mid-March spread of $5.72/Bbl