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An increasing number of later-dated U.S. crude futures contracts are trading at a premium to nearby prices. This shift signals that the market expects supply to outpace demand through 2019 and into 2020.
A forward curve moving into contango signals expected oversupply, which tends to keep crude and energy-linked costs subdued for feed buyers over the coming year.
reuters.comDevika Krishna KumarNov 15, 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.
Futures curve shift toward contango signals expected oversupply through 2019, a supply-driven bearish factor that sustained the selling.
