Brent crude limps into a new contract date

Yesterday was the final day of trading for the June Brent crude contract and the price fell back into that expiry. Brent for June delivery later settled, $1.10 lower on the NYMEX exchange, at $88.40. Well, that June contract has now expired, so now we are trading the July contract today and because the market is in what is known as Backwardation, that means Brent for July is lower and also prices have fallen back more since yesterday anyway. The focus for oil prices very much remains centred on events and developments in the Middle East. That continues to eclipse any demand/supply dynamics from other directions most of the time. Brent for July delivery has traded to as low at $86.84, but is right now lifting towards session highs (87.35), currently trading at $87.32