Oil
for delivery in December 2016 has tumbled $3.50 a barrel in the first
two weeks of the year, trading at just $79.45 on Friday afternoon, its
lowest price since 2009. That is an unusually abrupt move for
longer-dated contracts that are typically much less volatile than prompt
crude. For most of last year, the contract traded in a narrow range on
either side of $84 a barrel.
The
shift in prices on either side of the Atlantic is even more dramatic
further down the curve, with December 2019 U.S. crude now trading at a
record discount versus the equivalent European Brent contract. The
spread has doubled this month to nearly $15 a barrel, data show. (more)
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