U.S. crude futures prices have swung into substantial backwardation after a spillage on the Keystone pipeline severely reduced crude deliveries from Canada into the U.S. Midwest. U.S. crude futures, also known as West Texas Intermediate (WTI), are based on crude delivered into the tank and pipeline system around Cushing, Oklahoma. Futures prices are therefore very sensitive to anything that affects the regional supply-demand balance in the Midwest. Sponsored After the spill on Nov. 16, the calendar spread between WTI futures for delivery in January and July 2018 has surged from a contango of 2 cents a barrel to a backwardation of $1.17. The six-month WTI […]