Monday, January 6, 2025
OPEC Cut Puts Market in Backwardation for First Time in Two Years

OPEC Cut Puts Forward Curve in Backwardation for First Time in Two Years

E&Ps Locking in Cash Flows and Sales Prices OPEC’s agreement to cut production levels has kicked off a rush among shale oil companies to hedge their oil price risk above $50 for 2017 and 2018. The number of E&Ps selling oil for delivery next year has pushed the WTI forward curve into slight backwardation after two years of contango. Compare