- WTI is headed for the biggest weekly loss in four months amid an uncertain oil demand outlook due to a resurgence of Covid-19
- Oil traded below $72/Bbl Friday morning and could be headed for a weekly decline of nearly 3.5%
- The delta variant is triggering renewed restrictions on movement as it becomes the dominant covid strain around the globe
- The UAE and Saudi Arabia have reached a compromise that could give the Emirates a more generous output limit next year and allow the whole OPEC+ group to pump more oil in the coming months (Bloomberg)
- The amount of backwardation in both the Brent and WTI curves relaxed this week as prices have slumped
- WTI’s August-September spread backwardation retreated 22c to +27c/Bbl on Thursday; the weakest close for the prompt spread since June 22
- The reduction in backwardation can be perceived as a bearish price signal indicating that concerns about supply tightness are fading (Bloomberg)