- West Texas Intermediate traded at a six-year high Tuesday morning of $76.97/Bbl following OPEC member disagreements
- Saudi Arabia and the UAE tussle is blocking a supply increase
- The oil markets were counting on a 400 MBbl/d increase in supply for August
- OPEC+ canceled its meeting to discuss a rise in output after multiple days of debate
- Timespreads for Brent soared amid OPEC+’s failure to agree on production increases (Bloomberg)
- Brent’s prompt spread topped $1/Bbl on Tuesday, with medium- and long-term spreads also rising
- The September-October spread rose 12c to 99c/Bbl backwardation on Monday
- Brent crude’s twelve-month timespread is currently at -$6.55/Bbl – a severe amount of backwardation, driven by near-term contract strength