Blue Lacy Advisors, LLC - January Oil and Products Commentary
Minneapolis, MN | January 23, 2023 | By: Steve Sinos, Blue Lacy Advisors, LLC
The sentiment was more positive this week, with the front of the curve’s contango tightened and the back’s backwardation widened – signaling tighter balances in both benchmarks once we get through 1Q23. The real question, and possibly the best source of confirmatory information, will be how spreads hold up on crudes. Attention is rightly paid to Russian spreads because of the immediate risk, but for the ongoing trade, West African, Brazilian, and Middle East spreads to Brent will be indicative of core demand. Most of these cargoes have paced Brent’s gains and collectively trade in the $85 range.
*This summary is based off January 14, 2023
A free excerpt, such as this one, will be published on a delay periodically. This is an excerpt from Blue Lacy Advisors, LLC's (“Blue Lacy”) weekly commentary for clients, which is based on a collection of models, research/analytical subscriptions, and bespoke work. Each week Blue Lacy explores how market drivers included in these analyses might affect or be used in clients' planning, budgeting, and execution of strategy. Call Blue Lacy to make an appointment today!
Meet the Author!
Steve has spent his career in strategy, risk, trading, and investment. He works with investors to source investments in opportunistic or high growth sectors, with particular interest in early-stage companies solving clearly defined problems.
He is currently a Managing Partner with Blue Lacy Advisors LLC, giving management teams and investors confidence in their decision making by supporting strategic planning and execution, risk management, commodity trading, and market analysis.
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