Demand weakness hits European market sentiment
Amid falling US crude runs over July, backwardation in market structures has weakened and the Brent-WTI spread has widened, making US barrels more attractive for export.
With autumn refinery maintenance approaching, lowering Europe’s crude requirements, regional producers are faced with a triple whammy of weaker demand, dropping flat prices and shrinking differentials.
Global onshore inventories have dropped to the lowest level on our records, driven by a recent drop from China as well as persistent weekly SPR releases in the US...