Contango makes it profitable for crude traders to store large volumes of crude oil through "cash and carry" strategies which are no longer possible when the market is in backwardation. Many observers ...
The specter of contango must be acknowledged when it comes to commodities ETFs, particularly those that are based on futures contracts, not actual physical holdings of an underlying commodity. And ...
Investors run into new concepts all the time, and to be successful with your investments, you have to understand all the factors that can affect your portfolio and its holdings. Those who invest ...
Crude oil's futures curve will likely switch to contango this summer from the current backwardation as global inventory is expected to build which would ease supply tightness, Bank of America energy ...
LONDON (Reuters) - “The rebalancing of the oil market desired by the leading producers has been a stubborn process,” the International Energy Agency wrote in its latest monthly oil market report. The ...
All you commodity investors out there take note: crude oil is toying with contango again. The news was first reported by Brad Zigler at HardAssetsInvestor.com. It has important implications for any ...
When the spread between futures and spot gets distorted, it suggests there is dislocation in the market. Read more here.
Bitcoin BTC $87,123.65 futures on the Chicago-based CME exchange slipped for a few days into "backwardation," a condition sometimes observed in commodities markets where prices on near-month contracts ...
LONDON (Reuters) - "Backwardation is the solution" to OPEC's problem of how to raise output and revenues without sparking another shale boom, according to the influential oil research team at Goldman ...
Whether you invest in ETFs or futures contracts, you can't afford to ignore the risk this phenomenon poses. Investors run into new concepts all the time, and to be successful with your investments, ...