US Spot Differentials Steady as Traders Await Opec Decision

Oil Daily, The, April, 2003

Spot market differentials were steady to weaker early this week as the market awaits word from Opec whether the producers' group will cut production levels and by how much.

After a three-day weekend in observance of the Easter holiday, the spot market saw a bit of action in the way of the expiration of the May contract on the New York Mercantile Exchange and the wide May-June backwardation.

Prompt-month futures moved higher on Monday, hitting an intra-day high of more than $31 on Monday, on expectations of a production cut at the Opec meeting. But the May crude contract went off the board on Tuesday lower at $29.91 per barrel. June crude closed on Tuesday at $27.99/bbl (see story,p3).

Traders said the steep backwardation in the futures market,...