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Crude oil is expected to return to its consolidation phase, with front-month Brent expected to stay range-bound between $40-$43/bbl, according to Howie Lee from OCBC Bank. 

Key quotes

“The one-to-six month Brent spread has stayed relatively stable at about $2/bbl in the past week, while VLCC rates appear to have eased. It looks like the market is leaning towards creating near-term demand via lower prices.”

“The failure of Brent to stay above $43/bbl last week suggests that the market structure is still bearish at the moment.”

“We expect Brent to hover between $40-$43/bbl for now.”