# Commentary: Oil's big backwardation spells trouble ahead

> 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.

- Date: 2018-04-30 · published 2018-04-30T12:00:00.000Z
- Category: market · region Global · magnitude low
- Page: https://feedsoft.ai/events/65716-commentary-oil-s-big-backwardation-spells-trouble-ahead
- Commodities: [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md)

## Why it matters

Steep backwardation signals tight prompt supply, which supports crude prices and raises the cost of diesel and energy inputs for feed production and transport.

## Read by commodity

- BRENT: bullish ▲

## Sources

- reuters.com: https://www.reuters.com/article/oil-prices-kemp/rpt-column-oils-big-backwardation-spells-trouble-ahead-kemp-idUSL8N1S46GD/

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