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Futures market structure has flipped back into contango, with prompt September Brent trading about $2 a barrel below March 2021 contracts, the steepest discount since May. Rising OPEC and US supply, alongside stalled demand recovery, is driving the shift.
OPEC faces a choice between further cuts or tolerating lower prices.
A return to contango signals an expected near-term crude surplus, which typically pressures energy prices and therefore diesel and fertilizer input costs over the coming months.
energynow.comReutersJul 30, 2020Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
