At a time when there is expectation of a tightening supply situation within the oil market, then the reaction to Hurricane Beryl is completely understandable. After all, this is sort of unknown territory, having a storm of such magnitude so early in the summer and being a prelude to the expected record number of storms predicted in the forthcoming hurricane season.
The first day of the latter part of 2024 arrived with a bang. Oil prices rallied hard, front-month Brent was quick to fill the expiry gap left on the continuation chart with backwardation widening both on the European crude marker and its trans-Atlantic peer. More importantly, products performed much better than crude oil, thus crack spread values have improved convincingly.
Last week the oil complex put in something of a dogged performance. Despite the setback of the US Oil Inventory figures, the oil fraternity endeavoured to hold on to the idea of impending summer demand and this was aided by worries concerning spreading hostilities between Israel and its immediate foes in both Gaza and Lebanon.
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