# The Forward Curve for Oil Prices Suddenly Looks Awful for OPEC - Bloomberg

> 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.

- Date: 2017-06-16 · published 2017-06-16T12:00:00.000Z
- Category: market · region Global · magnitude low
- Page: https://feedsoft.ai/events/70656-the-forward-curve-for-oil-prices-suddenly-looks-awful-for-opec-bloomberg
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md)

## Why it matters

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.

## Read by commodity

- WTI: bearish ▼
- BRENT: bearish ▼

## Sources

- bloomberg.com: https://www.bloomberg.com/news/articles/2017-06-16/the-forward-curve-for-oil-prices-suddenly-looks-awful-for-opec

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