Brent slumps below $90/b

摘要

Dated Brent dropped from $101.66/barrel May 31 to $88.62/b June 25, the lowest level since December 1, 2010, as demand faltered and supply remained robust. US benchmark West Texas Intermediate dropped below $80/b, retaining a discount to Dated Brent of just over $10/b. Weak economic data, both from developing and developed economies, have combined with over-supply from OPEC to weaken the oil price. The Brent market has shifted from backwardation at end-May into a substantial contango by end-June, out to first-quarter 2013.