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Front-month Brent futures have recently traded in a backwardation of more than $3.40 per barrel over the seventh-month contract. The commentary says spot prices tend to trade at a premium when inventories are low and falling.
Steep backwardation signals tight prompt supply, which supports crude prices and raises the cost of diesel and energy inputs for feed production and transport.
reuters.comJohn KempApr 30, 2018Not 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.
