Brent: Backwardation cushions risk assets – Deutsche Bank

Source Fxstreet

Deutsche Bank’s Henry Allen notes that despite the Iran conflict and higher long-dated Oil prices, risk assets and equities have remained resilient as the Brent curve stays heavily backwardated. He argues markets still see the Oil shock as temporary, with 6‑month Brent futures only just above $90/bbl, limiting the likelihood of a deeper selloff for now.

Backwardated curve signals temporary oil shock

"Indeed, yesterday saw oil futures for December 2026 reach new intraday highs, whilst government bond yields are trading around multi-year records as well."

"By contrast today, the oil curve remains heavily backwardated – the gap between front-end futures and 6-month futures has consistently remained elevated."

"Whether or not that ultimately proves correct, those expectations are reflective of a belief that this would be a temporary shock, hence risk assets have been resilient."

"But even there, the 6-month Brent future is still only just above $90/bbl, and declining energy intensity means that a given level for oil prices doesn’t create the economic shock it used to."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
New Phishing SMS scam related to the Bybit hack now targets the Binance exchange clientsWeb3 enthusiast and crypto entrepreneur Joe Zhou has flagged a new phishing SMS message scam related to the Binance exchange.
Author  Cryptopolitan
Feb 26, 2025
Web3 enthusiast and crypto entrepreneur Joe Zhou has flagged a new phishing SMS message scam related to the Binance exchange.
placeholder
Metaplanet acquires BTC at record pricesMetaplanet added another 797 BTC to its treasury.
Author  Cryptopolitan
Jul 14, 2025
Metaplanet added another 797 BTC to its treasury.
placeholder
Meme Coins Price Forecast: DOGE, SHIB, PEPE flash sell signals, hint at further lossesMeme coins, such as Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE), are experiencing a decline as selling pressure builds in the broader cryptocurrency market.
Author  FXStreet
Aug 19, 2025
Meme coins, such as Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE), are experiencing a decline as selling pressure builds in the broader cryptocurrency market.
placeholder
Bitcoin Traders Split on Whether BTC Will Drop to $70K or Rebound SoonBitcoin market participants hold divided views for short-term price action, with targets ranging vastly between $150,000 and a potential drop back to $70,000.
Author  Mitrade
Dec 22, 2025
Bitcoin market participants hold divided views for short-term price action, with targets ranging vastly between $150,000 and a potential drop back to $70,000.
placeholder
EUR/USD steadies near 1.1650 ahead of US Nonfarm PayrollsEUR/USD holds ground after five days of losses, trading around 1.1650 during the Asian hours on Friday. Traders remain cautious ahead of the US Nonfarm Payrolls (NFP) report, which is expected to offer further insight into labor market conditions and the Federal Reserve’s (Fed) policy outlook.
Author  FXStreet
Jan 09, Fri
EUR/USD holds ground after five days of losses, trading around 1.1650 during the Asian hours on Friday. Traders remain cautious ahead of the US Nonfarm Payrolls (NFP) report, which is expected to offer further insight into labor market conditions and the Federal Reserve’s (Fed) policy outlook.
Related Instrument
goTop
quote