Our weekly commentaries and updates will remain free until April 22, 2019. Effective April 22, 2019, a subscription will be required in order to receive them. Anyone who signs up before April 30, 2019 will receive a yearly subscription at the discounted rate of $99/yr. Of course, clients of Fundamental Analytics and BlackSummit Financial Group will continue receiving our weekly content for free.
We would be happy to discuss this commentary with you and provide additional market insights. Feel free to call us at 312-348-7518 or email us at firstname.lastname@example.org
April 04, 2019 | by Joel Fingerman
Since March 6, 2019, front-month crude oil prices have increased more than $6, from $56.22 to $62.46 per barrel. Chart 1 of the forward curves for those two dates also shows the contango coming out of the market to a primarily backwardated market. As of March 6, the contango was over two dollars from the April contract at $56.22 to the December contract at $58.61 (red line).
As of April 3, the contango was only nine cents from the May contract at $62.46 to the July contract at $62.55; after that the forward curve is backwardated. Backwardation supports rising prices, and, in turn, rising prices generally increase backwardation. The forward curves are indicating higher prices.
For more insights and analysis or to find out about our free trial offer, go to www.fundamentalanalytics.com
Follow us on Twitter @fundanalytics or on LinkedIn
The Fundamental Analytics Team