Middle East Economic Survey

VOL. XLVII

No 48

29-November-2004

OIL PRICES

Price Contango Indicates Oil Over-Supply, Says SG

The differential between front-month IPE Brent and the third nearby contract is an excellent measure of the oil markets strength, and shows rapid erosion from 27 October onwards with a deepening contango beginning on 5 November, according to Société Générale (SG). In the Weekly Oils report of 22 November, SG Economists Deborah White and Alexandre Kervinio observe: The contango...