OPEC Monthly Oil Market Report, August 2020

Crude Oil Price Movements

Crude oil spot prices extended gains in August, reaching a six-month high. The OPEC Reference Basket (ORB) value rose in August, increasing more than other spot references. On a monthly basis, the ORB increased by $1.77 to $45.19/b, up by 4.1%. Crude oil futures prices rose further in August by about 4% m-o-m, supported by positive market sentiment, steadily improving market fundamentals, positive economic indicators, and a weaker US dollar. On a monthly average, the ICE Brent front month rose by $1.80, or 4.2%, to average $45.02/b, while NYMEX WTI increased by $1.62, or 4.0%, to average $42.39/b. The price structures of the three main futures markets moved into a deeper contango. Hedge funds and other money managers showed no clear positioning trend in August amid the uncertain outlook on economic and oil demand recovery. The sweet/sour crude differential remained narrow in all markets…

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