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Dated reality check

The physical differential takes a massive hit as SPM3 is expected to come back at last. All that while the market is focused in Davos.
Published: January 21, 2026
Written by:
Will Cunliffe

Will Cunliffe

Research Analyst, Flux
Will Cunliffe
,
Edward Hayden-Briffett

Edward Hayden-Briffett

Research Analyst, Flux
Edward Hayden-Briffett
and
Spyridon Kokas

Spyridon Kokas

Research Analyst, Flux
Spyridon Kokas
Reviewed by:
Jorge Montepeque

Jorge Montepeque

Head of Benchmarking, Flux
Jorge Montepeque
Edition: Euro Edition
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The physical differential takes a massive hit as SPM3 is expected to come back at last. All that while the market is focused in Davos.

Everyone is flip-flopping yet again – the IEA this morning and bearish ship trackers minute by minute. Kpler said in today’s webinar that it expects Brent to average $65 in 2026, attributing it to the geopolitical risks, despite what they argue the vast oil supplies in the market – yet the prompt Brent spread is still trading near the 70c mark and contango has been pushed to Feb’27! You don’t store crude in backwardation, dear reader, so again take all this excess supply with a pinch of salt.

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