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...