(Bloomberg) — With OPEC+ just days from meeting, those countries who favor ratcheting up oil production may be finding some support for their arguments from surging prices.
Headline futures contracts jumped 30% this month with Brent at one point on Wednesday hitting $48.75 a barrel, the highest since March. Critically though, a much more fundamental shift has taken place in the forward curve, which offers clues about traders’ perspectives on supply and demand — both now and in future. Large parts of the curve are now trading in a structure known as backwardation, suggesting a clamor for barrels. Just a week ago, they were in contango and pointing to surplus.
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