The Term Structure Drops Easing Oil Tightness Concerns

The tightness in the oil markets continues to point to higher prices, but recent developments have eased future concerns. While oil prices have dropped 5% from their highs this week, following news that Libya would begin pumping again after a brief outage, the term structure tumbled 31%, showing that the tightness in the oil patch might be easing. Despite the correction in prices, oil markets are tight and…