Strong Crude Structure Enables Release of Crude from Floating Storage

There has been a strengthening in the Middle East’s Dubai crude market structure.
Several million barrels of the Middle East sour crude from floating tankers off Malaysia has been released.
Four tankers are scheduled to lift cargoes from Malaysia’s port of Sungai Linggi and Tanjung Pelepas.
Dubai futures inter month spreads have flipped to backwardation.
It is a market state where prices in the prompt months are higher than the latter months.
This move comes after being in a state of contango...