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المشهد العربي
Oil supply concerns grow as Brent gap widens
The movements in the oil market suggest increasing concerns over immediate crude supplies, as the price differential between the nearest- maturity Brent contracts and those six months ahead reached its highest level in over a month. The price of the nearest contract jumped by $8.92 per barrel, amid rising expectations of a supply shortage in the near term due to escalating military tensions and attacks on ships near the Strait of Hormuz. This revives geopolitical concerns regarding the security of oil supplies from the Middle East. The widening price spread, known in markets as "backwardation," reflects expectations that there will not be enough oil available in the short term to meet the ongoing demand for immediate delivery.
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