#osp

The post Oil: Gulf supply recovery challenges oversupply narrative – Commerzbank appeared on BitcoinEthereumNews.com. Commerzbank’s Carsten Fritsch highlights a rapid recovery in Gulf oil production and exports following the US–Iran agreement, with Brent moving into contango and Saudi Arabia slashing its OSP for Asian buyers. Despite sharply higher observed flows, Fritsch argues that mine clearance, restricted tanker traffic and stock replenishment needs mean the Oil market is unlikely to face a genuine oversupply in the short term. Gulf output rebounds but risks linger “Price signals also suggest that oil supplies have risen more sharply than the official data indicate. This is because the front end of the Brent forward curve is in contango. Initially, only the first two futures contracts were affected.” “Last week, however, the contango structure extended to the first four contracts. Another indication could be Saudi Arabia’s sharp cut in the official selling prices (OSP) for August.