Oil's Sell-Off Below $60 Ripples All the Way Along the Curve
(Bloomberg) -- The tumult in crude prices is resonating through next year and the years after that.
Brent crude futures fell below $60 a barrel for the first time since 2017 on Friday, and that move pulled vast swathes of the futures curve nearly $2 a barrel lower. The global benchmark is now trading in a bearish contango structure -- one that makes it profitable to store oil in tanks and suggests an oversupply in the market.
As a result of the move, a favored trade of market speculators -- the spread between Brent for December 2019 and December 2020 -- fell into contango for the first time since October 2017.
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