Comment by bhl
6 years ago
The technical term for this is contango [1]. Last time this happened to crude oil was after the GFC, as mentioned in the article.
6 years ago
The technical term for this is contango [1]. Last time this happened to crude oil was after the GFC, as mentioned in the article.
Contango means that futures prices further out are higher than futures prices in the nearer term, and is normal for oil futures; what's notable is the extreme slope of the futures curve we're seeing.