Rising prices: Crude oil storage tanks at the Cushing oil hub in Cushing, Oklahoma. Traders are willing to pay big premiums to secure physical barrels with the current rise in demand. — Reuters
LONDON: The physical oil market, in which millions of barrels of crude are bought and sold each day, is screaming for more supply in the run-up to a pivotal meeting of Opec+ producers this week.
Whether it’s in the North Sea, the Cushing storage hub in Oklahoma, or the Middle East, futures and swaps in the world’s leading pricing locations are trading deep in a pattern called backwardation.
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