Oil Market Abandons Hope of Re-Balancing This Year
- Brent December 2017-2018 spread plunges to lowest this year
- Wall Street banks flag weaker outlook for 2018 oil prices
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The oil market has all but abandoned the hope of a re-balancing any time soon, with the re-emergence of a pricing structure that signals investors expect a glut to endure into next year.
The return of a deep contango -- when oil prices for immediate delivery are lower than forward contracts -- comes days after several Wall Street banks warned investors of a deteriorating outlook for 2018 because of strong U.S. shale production growth and the rising output in Nigeria and Libya.