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Brent and West Texas Intermediate crude are both in contango, with forward prices rising into the next decade, after falling almost 15% since late May. Contango usually signals weak spot demand.
Bloomberg notes it can also encourage non-OPEC producers to lock in output for future years.
A contango curve signals a glut in near-term supply and gives non-OPEC producers an incentive to hedge future output, which adds to bearish pressure on crude. Lower crude feeds through to energy costs and biofuel economics.
bloomberg.comAlex LongleyJun 16, 2017Not enough comparable past events yet for a historical read.
Not 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.
