# Headache for OPEC as oil market structure signals return of glut - Energy News, Top Headlines, Commentaries, Features & Events - EnergyNow.com

> 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.

- Date: 2020-07-30 · published 2020-07-30T12:00:00.000Z
- Category: market · region Global · magnitude medium
- Page: https://feedsoft.ai/events/52262-headache-for-opec-as-oil-market-structure-signals-return-of-glut-energy-news
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md), [ULSD / Diesel](https://feedsoft.ai/c/DIESEL.md)

## Why it matters

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.

## Read by commodity

- WTI: bearish ▼
- BRENT: bearish ▼

## Sources

- energynow.com: https://energynow.com/2020/07/headache-for-opec-as-oil-market-structure-signals-return-of-glut/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.