# OPEC's Backwardated Futures Curve Hopes Look Shaky - Bloomberg

> 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.

- Date: 2017-08-01 · published 2017-08-01T12:00:00.000Z
- Category: market · region Global · magnitude low
- Page: https://feedsoft.ai/events/69648-opec-s-backwardated-futures-curve-hopes-look-shaky-bloomberg
- Commodities: [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md)

## Why it matters

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.

## Read by commodity

- BRENT: neutral

## Sources

- bloomberg.com: https://www.bloomberg.com/news/articles/2017-08-01/opec-s-backwardated-futures-curve-hopes-look-shaky

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