OPEC, U.S. cuts help but demand recovery still timid – ZAWYA

OPEC, U.S. cuts help but demand recovery still timid – ZAWYA

A contango market structure means the current value is lower than in later months, which can make it profitable to store oil now to sell at a higher price later.. Even though the market shows signs of recovery, many have hedged their floating storage some six months to a year out and have little incentive to offer their oil now.. Traders at refineries cautioned that the uptick could be short-lived as the higher prices could scare them off.. Azeri Light has jumped up around $4 to trade at a premium of between $2-$3 a barrel to dated Brent since last week while Kazakh CPC Blend is up $5 since April.. Overall, output is expected to be down between 3.5 million and 4.4 million bpd in May in the United States and Canada, Plains All American Pipeline LP PAA.N said in an earnings call on Tuesday.. I was offered some barrels today for June from a producer that originally cut," a U.S.-based trader said..