A forward curve is said to be in contango (contango in gold) when futures (for instance gold futures) are traded at a premium over spot (for instance spot gold 4 Feb 2020 Besides encouraging storage of oil, contango also hurts financial investors who have to pay a premium every month they renew a futures 17 Apr 2018 When the oil futures curve is in backwardation, the price of oil in the future is lower than today's price. When the curve is in contango, the future 1 Nov 2018 That oil production is volatile and dependent on geopolitical factors is not debatable, however, and the crude oil futures curve started to 11 Feb 2020 “The entire forward curve has also shifted into contango now,” ING bank said in a daily research note. “There are reports of increased interest in
17 Apr 2018 When the oil futures curve is in backwardation, the price of oil in the future is lower than today's price. When the curve is in contango, the future 1 Nov 2018 That oil production is volatile and dependent on geopolitical factors is not debatable, however, and the crude oil futures curve started to
Contango and backwardation are terms used to define the structure of the forward curve. When a market is in contango, the forward price of a futures contract is higher than the spot price. Conversely, when a market is in backwardation, the forward price of the futures contract is lower than the spot price.
4 Feb 2020 Besides encouraging storage of oil, contango also hurts financial investors who have to pay a premium every month they renew a futures 17 Apr 2018 When the oil futures curve is in backwardation, the price of oil in the future is lower than today's price. When the curve is in contango, the future 1 Nov 2018 That oil production is volatile and dependent on geopolitical factors is not debatable, however, and the crude oil futures curve started to 11 Feb 2020 “The entire forward curve has also shifted into contango now,” ING bank said in a daily research note. “There are reports of increased interest in When crude oil traders speak of the forward curve or “term structure” of the futures prices; this term structure is called contango or – more colloquially – the 1 Jul 2019 Gerrit Venter, senior research manager at Wood Mackenzie, plots how the shape of the forward curve for crude oil has changed over the last 15 11 Feb 2020 The Brent crude futures curve momentarily entered full contango, in which each later dated future contract is less expensive than the the one
A forward curve is said to be in contango (contango in gold) when futures (for instance gold futures) are traded at a premium over spot (for instance spot gold