An esoteric oil gauge has spiked to an unprecedented level

Bloomberg/Alex Longley and Sharon Cho/6-28-2022

photograph of an oil tanker being loaded at Iraqi oil installation

“Murban crude oil futures for August are trading at about $8.90 a barrel higher than for the following month. The same spread closed at a record $9.52 on June 24. The jump is so eye-watering that the equivalent marker for global benchmark Brent has never traded at that level.”

USAGOLD note: Inverted futures markets are an indication of strong current demand. At almost 10% more than the next month, it indicates the need might be significant. The Murban oil futures (UAE) situation confirms other reports from oil market executives that the market for oil is very strong and getting stronger with supply unable to keep pace. We track the oil market events because of crude pricing’s direct impact on the inflation rate globally.

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