Brent forward curve backwardation
29 Aug 2019 As the figure below shows, the market has returned to contango after being at or near backwardation for the past year. U.S. Futures Prices: 1st Month Minus Fourth Month Contract Before the shale revolution, WTI was typically a couple of dollars higher than Brent, but since then the reverse is true. 30 Sep 2019 Backwardation occurs when the spot price for oil is greater than prices trading in the futures market. The image below highlights backwardation in effect. Exhibit 2: Brent Crude Futures Curve Source: Eikon by Refinitiv Oil Futures have been active since the 1980s, Oil forward contracts have been active for a lot longer. In either case, the futures curve and forward curves will be in contango or backwardation based on the supply-demand on the spot oil market.