Oil for June delivery rocketed past $133 a barrel after a four-dollar climb on Wednesday, but more starkly, oil for delivery in December is already worth $135.25.
The New York Mercantil Exchange yesterday showed at oil forecasts as advanced as December 2016 ($142 oil) could themselves drive prices.
When oil futures prices are much higher than today’s spot prices and driven by trading, the “holding pattern” is called “contango” by commodities traders.
According to a survey by Greenwich Associates cited in newspaper The Globe & Mail Thursday, over a third of commodity investors have entered the market for the first time in the past three years.
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