LONDON, May 21 (Reuters) - The structure of the benchmark Brent crude oil futures market fell on Tuesday to its weakest since February, another indication that concern about tight supply for prompt delivery is easing.

The premium of the first-month Brent contract to the six-month contract narrowed to $2.15 a barrel on Tuesday, the lowest since early February. The premium has more than halved from a 2024 high of $5.76 on April 5.

The narrowing of the premium, a market structure called backwardation, indicates that a perception earlier this year of tight supply for prompt delivery has eased.

Global physical crude oil markets are weakening, traders and analysts told Reuters this week, reflecting soft consumer and industrial demand and rising supply from non-OPEC producers.

In a further indication, the premium of the first-month Brent contract to the second month narrowed to a premium of 10 cents, the lowest since January, on Tuesday.

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https://www.reuters.com/markets/commodities/brent-oil-market-structure-weakens-tightness-concern-eases-2024-05-21/