(Reuters) The spread between futures prices for oil delivered in June and July has moved into a backwardation of 17 cents per barrel from a contango of almost 50 cents at the end of last month. Contango tends to be associated with an oversupplied market and high and rising stocks, while backwardation is associated with the opposite (“Brent contango is hard to square with missing barrels”, Reuters, March 10).
Hedge funds bet on tightening oil market
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