Crude Storage Tanks Nearing Their Brim Spur `Super Contango'
- Gap between monthly contracts reached $1.46 a barrel Tuesday
- U.S. crude supply at highest for time of year since 1930: EIA
This article is for subscribers only.
Surging U.S. crude stockpiles that have filled storage tanks near capacity are widening the discount on immediate oil deliveries.
Spreads between monthly oil-futures contracts are often seen as a reliable gauge of market conditions, and a discount on the earliest months -- known as contango -- typically signals that supplies exceed demand. Contango isn’t "going away anytime soon," Societe Generale SA analysts said in a research note on Tuesday.