Key oil spread jumps to seven-year high in sign of supply crunch

High rates: Crude oil storage tanks at the Cushing oil hub in Oklahoma. Crude inventories have reached pre-pandemic lows at Cushing. — Reuters

WASHINGTON: A key spread between monthly oil futures contracts has blown out to the widest level in seven years as traders bet that US crude inventories are about to get a whole lot tighter.

The premium traders are placing on West Texas Intermediate crude for September delivery over October contracts touched US$1.12 (RM4.65) a barrel on Monday.