Business & Finance
Key Oil Spread Flips to Contango as Supply From Hormuz Climbs
Key Points
Commodities Key Oil Spread Flips to Contango as Supply From Hormuz Climbs A closely-watched oil market indicator flipped into a bearish structure for the first time since February, as the US-Iran agreement to reopen the Strait of Hormuz boosts flows from the Middle East. Brent’s prompt time-spread traded in a shallow contango, with the nearest contract’s price below the next month’s. That structure typically signals expectations of oversupply.
Commodities
Key Oil Spread Flips to Contango as Supply From Hormuz Climbs
A closely-watched oil market indicator flipped into a bearish structure for the first time since February, as the US-Iran agreement to reopen the Strait of Hormuz boosts flows from the Middle East.
Brent’s prompt time-spread traded in a shallow contango, with the nearest contract’s price below the next month’s. That structure typically signals expectations of oversupply. It’s the latest in a series of signals that point to a sudden softening in oil markets as premiums for real-world barrels slide.