Abdullah is a senior research analyst in the Markets and Industrial Development program, with a focus on oil markets and energy policies. He holds a B.S. degree in Petroleum Engineering from KFUPM.

Balancing World Oil Markets and Understanding Contango and Inventories: The Changing Nature of World Oil Markets
The general theory of storage suggests that the level of inventories is a key factor in determining the structure of the oil futures curve, or the basis, over time. The basis is the difference between the price of oil in the futures market and the price of oil in the spot market. As an indicator of future price movements, the basis follows a different dynamic when inventories are in scarce supply or in surplus. This means that there are several different market states that reflect different underlying crude oil market conditions.
6th July 2020