Column: Frustrated oil bulls made to wait for price recovery – Reuters

Column: Frustrated oil bulls made to wait for price recovery – Reuters

LONDON, June 22 (Reuters) - Brent prices and spreads indicate the oil market is close to balance – with upside risks from low inventories and supply restraint by Saudi Arabia and its OPEC⁺ allies offset by downside risks from a slowing global economy.

The prolonged calm has disappointed producers as well as investors hoping output cuts announced by OPEC⁺ in early April and an extra voluntary cut by Saudi Arabia announced in June would quickly push prices higher.

In the physical market, dated Brent prices are in contango through the rest of June and July, indicating traders expect plenty of crude to be available.