Graphic: Oil bulls party like it’s 2014 and $100 a barrel

11 Aug 2017   Prices

Brent crude futures finally bear the hallmarks of a market in which supply and demand are falling into balance, although the last time this happened, it was 2014 and the price was over $100 a barrel. Prices of oil for prompt delivery are above those for delivery further in the future to the extent that the first three timespreads, or price differences between two futures contracts, are in negative territory. The first three spreads last showed this structure, known as backwardation, in mid-2014, just before a tidal wave of surplus oil washed the crude price below the $100 milestone. At around $53, the price is about half that level now, but this inversion shows investors and traders may just […]

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