Wild Oil Market Sees Record Contango as Expiry Nears
- WTI crude futures set to expire at end of Tuesday trading
- Spread between May-June contract widens beyond 2008 record
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Oil in New York has slumped to its weakest structure on record as the current contract nears expiration, adding extra volatility to a market that’s grappling with a glut and evaporating demand.
West Texas Intermediate crude futures on Monday fell to the biggest-ever discount to those for the following month, a structure known as contango that indicates near-term oversupply. It’s amplified by expiry of the current contract on Tuesday, as traders sell soon-to-be outdated futures and buy up those with a longer shelf-life.