According to Bloomberg, the recent surge in physical oil prices has eased as buyers backed away from the market, citing high costs and uncertainty. The premium for immediate delivery over future contracts narrowed, indicating a temporary relaxation of supply tightness.
However, analysts warn that the underlying supply constraints remain, driven by OPEC+ production cuts and geopolitical risks in key producing regions. The International Energy Agency (IEA) reported that global oil inventories remain below historical averages.
Market participants are closely watching upcoming OPEC+ meetings for any changes to output policy. The easing in physical premiums may be short-lived if demand picks up or supply disruptions occur.
