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The six-month WTI calendar spread moved from contango into backwardation for the first time since November 2014, where the nearby contract trades above later delivery months. Oil prices had risen for four consecutive months, and improved OPEC compliance was cited as a driver.
The shift signals growing immediate demand as inventories shrink.
Backwardation signals a tightening market and supports nearby crude prices. Firmer energy prices raise input costs for feed production and transport.
cnbc.comDavid ReidNov 1, 2017Not 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.
