The benchmark crude oil in Dubai in the Middle East is signaling an increase in oversupply, further confirming many indicators pointing to global oversupply of crude oil. The Dubai crude oil forward curve — which Asian traders and refiners base their trading prices on — is weakening rapidly. According to informed traders and brokers, in early trading on Tuesday, the difference between the January contract and the February contract for Dubai crude oil once turned negative. The spread for one of the January-February contract transactions fell to minus 2 US dollars per barrel. This market pattern, known as futures premium, is a typical sign of a bear market.

The benchmark crude oil in Dubai in the Middle East is signaling an increase in oversupply, further confirming many indicators pointing to global oversupply of crude oil. The Dubai crude oil forward curve — which Asian traders and refiners base their trading prices on — is weakening rapidly. According to informed traders and brokers, in early trading on Tuesday, the difference between the January contract and the February contract for Dubai crude oil once turned negative. The spread for one of the January-February contract transactions fell to minus 2 US dollars per barrel. This market pattern, known as futures premium, is a typical sign of a bear market.