6 January 2021
- Diminishing selling pressure on the physical market is an important factor behind the on-going market strength – see the chart of the week. This was discussed in our previous publication and we are glad that we documented it on time. Regardless of this short-term price-positive development, we continue to see steady supply increase which is likely to establish a ceiling above the price rally.
- Our spot crude oil demand view has improved in recent weeks 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