SINGAPORE, Nov 16 (Reuters) – Global oil markets remain very tight and heavily backwardated as demand returns to pre-pandemic levels, the chief executive officer of global trading firm Trafigura said on Tuesday.
“We are seeing a very, very tight oil market but it’s not artificially tight because of what OPEC is doing. Demand is there,” Jeremy Weir said at the FT Commodities Asia Summit.
Global crude benchmark Brent has recovered 60% since the start of the year, trading at above $80 a barrel, as nations ease COVID-19 restrictions while the world’s economy rebounds from the pandemic.
Front-month prices are about $1 higher than those in the second month, a market structure known as backwardation that indicates tight prompt supplies as the Organization of the Petroleum Exporting Countries and their allies continue to restrict…