Nearby Brent crude contract spread hits 2023 high on tight supply
The spread between the front and second month contract for global oil benchmark Brent has widened to its highest this year, in another strong indicator of a supply deficit fuelled by protracted voluntary cuts from OPEC+.
Brent, which is used to price more than three-quarters of the world’s traded oil, has been rising since late June, as leading producer Saudi Arabia spearheaded output cuts.
The premium of the front month Brent contract to the second-month contract rose to as much as $2.45 a barrel on Thursday, the highest since October 2022. The November contract expires on Friday.
