Majors' contango play set to fade

Oil companies were able to offer a bright spot among depressed first quarter results recently thanks to trading activities centred around the contango in the West Texas Intermediate and Brent Crude oil markets. Contango occurs when the price of futures contracts increase along the forward curve. In mid-April, the front-month WTI price was trading more than $8.35 below contracts six months out along the curve.

This encourages storage, since oil traders will profit from buying now and selling for

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here