The oil market has shown a fair strength while the future prices have been lagging in-spite of the worries of slowdown. The impact of slowdown on the demand of physical market which has been showing a remarkable strength in terms of oil. The demand of oil is due to the tightness and signals of supply needed from countries in Asia and from Middle East. The cost of crude oil in Oman -Dubai has surged effectively for the later delivery on the year and ahead of 2012.

The slope downward known as the backwardation can be taken as for the immediate tightness says one of the reports. The premium charges on the other hand Saudi Arabia charges to refineries in Asia main crude stream has been high all the time. The way to weakness in oil market is less says veteran oil watcher Edward Morse from New York from the index noticed. The Oman Dubai backwardation during the first and second month has shown the physical tightness and may further increase.

The seasonal peak in oil demand has been seen in Asian countries and in Middle East while the Backwardation is strong. The demand for oil will increase and according to the estimates given by International Energy Agency for the year 2012. This year the estimates given by Western countries that the oil consumption in Asian market will grow by 915,000 barrels for a day. Global oil demand will be estimated to grow by 1.04m b/d while in Middle east it is about 226,000 barrels for a day.