Rebalancing the oil market could take slightly longer as a result of the upsurge in uncertainty following Britain’s vote to leave the EU but most traders seem to think it will not slow the process by more than 3-6 months. All the recent weakness in Brent crude prices has been concentrated in nearby futures contracts while contracts expiring in 2018 and beyond closed at fresh highs yesterday ( tmsnrt.rs/294FzeH ). Timespreads, which are one of the key indicators of changing market perceptions about the supply-demand-stocks balance, have been weakening over the last few weeks. The contango in Brent and WTI futures prices, which had narrowed between late January has been widening since late May or early June ( tmsnrt.rs/294MKrv ). The increase in contango, which had been gradual since the start of June, accelerated significantly in the wake of Britain’s vote to leave the EU. The market is pricing […]