Contango to Backwardation… EIA – Commodity Research Group

February 10, 2021 by Jim Colburn Leave a Comment

From yesterday’s release of the EIA’s Short Term Energy Outlook, here..

”This increase in backwardation is most likely the result of Saudi Arabia’s announced supply cuts for February and March, which EIA expects will contribute to global oil stock withdrawals during the first quarter of 2021. EIA forecasts first-quarter 2021 global oil stock withdrawals to average 2.0 million b/d, down only slightly from the high withdrawal rates during the second half of 2020.”

Commodity Research Group (CRG), founded by veteran analyst Edward Meir, is an independent research consultancy specializing in base and precious metals, as well energy products. The Group provides research and general price analysis for these markets, along with advice to companies seeking to construct commodity hedging strategies.

Our associates bring decades of experience to the table, as they seek to help our clients understand the markets. CRG will distill the myriad of pricing variables mentioned above into coherent research that is to-the-point and tailored to a clients hedging or pricing needs. In addition, CRG is available for consulting assignments and speaking engagements. CRG does not manage money or trade for itself.

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