OPEC Monthly Oil Market Report
The OPEC Reference Basket (ORB) value fell sharply in February, tumbling by about $10, or 15%, month-on-month (m-o-m), to settle at an average of $55.49/b, its lowest since September 2017. The ORB dropped further in March, to close at $34.71/b on 9 March. Similarly, ICE Brent fell in February by $8.20, or 12.9%, to average $55.48/b, while NYMEX WTI declined by $6.99, or 12.1%, to average $50.54/b. In March, futures prices tumbled about 25% in one trading session on 9 March, recording their biggest daily decline in nearly 30 years, with ICE Brent and NYMEX WTI settling respectively at $34.36/b and $31.13/b. Year-to-date (y-t-d), ICE Brent price was down $2.47, or 4.0%, at $59.77/b, while NYMEX WTI was higher by $1.03, or 1.9%, at $54.21/b, compared to a year earlier. The backwardation market structure of both ICE Brent and DME Oman flattened in February, before the M1/M3 spread flipped on 9 March to a deep contango of $1.42/b and $1.48/b, respectively. Meanwhile, NYMEX WTI moved deeper into contango, to stand at 81¢/b on 9 March. Hedge funds and other money managers continued to reduce their net long positions in February in response to the significant decline of more than 12% in crude oil prices over the month…
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