Later-dated Brent crude contracts trade below $100/bbl

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Storage tanks are seen at the Petroineos Ineos petrol refinery in Lavera, France, March 29, 2022. REUTERS/Benoit Tessier

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NEW YORK, July 5 (Reuters) - Brent crude futures for delivery in November on Tuesday traded below $100 per barrel for the first time since mid-May, according to Refinitiv Eikon data, highlighting a market structure that signals a tight oil market in the short term.

Crude futures going beyond November, to at least the middle of next year, all traded below $100 per barrel on Tuesday. Oil futures have been backwardated, a structure in which the current price of oil trades at a higher level than further-out contracts.

Front-month oil contracts , plummeted by about $10 a barrel on Tuesday on concerns of a looming global recession curtailing demand, even with expected supply disruptions as oil and gas workers in Norway began to strike.

The oil market has been contending with tight supplies since Russia's invasion of Ukraine. At the same time, consumers are demanding more oil after widespread lockdowns from the coronavirus pandemic. That has resulted in retail fuel prices climbing to record highs.

Crude futures for delivery in January 2023 through June 2023 all traded at the lowest since March, Refinitiv Eikon data showed.

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Reporting by Stephanie Kelly and Laila Kearney; Editing by Mark Porter and Deepa Babington

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Thomson Reuters

A New-York-based correspondent covering the U.S. crude market and member of the energy team since 2018 covering the oil and fuel markets as well as federal policy around renewable fuels.