15 December 2020
- Diminishing selling pressure on the physical market was an important factor behind the market strength in recent weeks and we are glad that we documented it on time. We also wrote that we identified possible increase in selling pressure on the physical market during weeks #49-50. The data for spot supply of crude oil confirms our concern.
- Our spot crude oil demand view has also deteriorated with the latest weekly demand assessment. We remain concerned about the abnormally high idle refinery capacity and weak margins which are likely to get weaker still. None of these factors benefit demand in the short-term.