Oil prices saw significant movements last week, with WTI futures increasing by $1.08 (2%) to $69.36 per barrel and Brent futures rising by $1.47 (2%) to $73.63 per barrel for the week ending March 28. The 12-month spread for WTI rose by $0.61 (16%), while the 6-month spread increased by $0.40 (18%). Brent's 12-month spread reached $5, the highest since early February, with the 6-month spread rising by $0.81 (33%). Despite a decrease in U.S. natural gas net long positions by 25 billion cubic feet (bcf) for the week ending March 21, and a 5 million barrels (mmb) drop in WTI net long positions, with long positions increasing by 4 mmb (2%) and shorts rising by 9 mmb (11%), Brent net long positions increased by 56 mmb (27%), with long positions up by 54 mmb (19%) and shorts down by 2 mmb (2%). The combined net long positions for Brent and WTI rose by 51 mmb (17%) for the same week, though they were 28% less than the 2022-24 average and 53% less than the 2019-22 average. Recent data from the U.S. Energy Information Administration (EIA) indicates a decline in U.S. crude production to 13.146 million barrels per day (mbpd) in January from 13.451 mbpd in December, marking the lowest level since February 2024. Despite this, U.S. oil demand reached a new January record at 20.736 mbpd, up 5.9% year-over-year. The EIA also revised its estimate of US crude production lower, with total oil liquids output now at 19.856 million barrels per day, about 140,000 barrels per day lower than previously estimated, with crude revised sharply down but NGLs higher. Oil futures extended gains on Monday, with U.S. crude rising over $1 a barrel to a five-week high, driven by strong U.S. demand figures. A record volume of swaps used to hedge benchmark physical oil prices changed hands on Friday as prices jumped. Market sentiment remains cautious, with Macquarie's Vikas Dwivedi indicating a bearish outlook, though less so than at higher price levels, seeing sustainable prices in the low $60s. A Reuters poll forecasts U.S. crude oil to average $69.16 per barrel in 2025, down from $70.66 in February, and Brent crude oil to average $72.94 per barrel in 2025, down from $74.63. The softer demand outlook is expected to weigh on oil prices, with OPEC+ navigating a tightrope.