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A Bloomberg piece explains that in a backwardated market, longer-dated futures trade below the spot price, so the curve slopes downward. It uses an older Brent example to illustrate the shape and questions whether hopes for OPEC-driven backwardation are holding.
Backwardation signals tight prompt supply and encourages drawing down inventories. Doubts about it suggest the crude price support from OPEC policy may be weaker than expected.
bloomberg.comLiam DenningAug 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.
