We were looking at $135/mt backwardation from Mar to Dec 2023 in diesel in NorthWest Europe and are now looking at less than $40/mt. We are seeing this trend across all energy products and even Soybean oil. Drop in backwardation or inverse is reflecting the flat price decrease meaning that front end demand is forcing this price drop. The next step is more pressure on the back end of the curve which has yet to appear as liquidity remains concentrated in the front-end of all commodities because of geopolitical considerations.
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