It also shows that the rally in futures prices – they passed $96 at one point on Wednesday – is in part being driven by what’s happening in the real world
Forget the futures market, the world’s most important oil price just smashed through $100 a barrel with every sign it is going to push higher. Dated Brent, the price of cargoes bought and sold in the North Sea, reached $100.8 a barrel on Wednesday for the first time since 2014, according to S&P Global Platts, the company that publishes the marker. Price spreads in the futures market are pointing to one the tightest markets ever.
The surge through $100 a barrel for Dated matters because the daily price assessment is at the centre of a web of complex oil derivatives and also sets a baseline against which millions of barrels of crude are transacted daily. It also shows that the rally in futures prices — they passed $96 at one point on Wednesday — is in part being driven by what’s happening in the real world.
The oil market globally is roaring higher because of demand that’s exc-eeding what some organisations — inclu-ding the International Energy Age-ncy — had been anticipating. That surge in consumption has compounded the fact that nations in the Organization of the Petro-leum Exporting Countries Plus producer alliance are not managing to pump as much crude as they had said they would.