The one-year oil curve fell into contango today, as prices from the first month continued to fall apart. I think the focus on the structure of the curve is exaggerated, especially given the uncertainty of China’s reopening timeline, but it probably triggered the final push to $70. , bidders, paying just over $70, finally got in, some perhaps hoping for an OPEC breakout or Russian action over the weekend. The lowest price was $70.06 and quickly rose to $71.50. WTI 15 min $70 is also more than just a big round number. The US authorities have indicated that they want to meet the SPR around $70 and this could be a support.
