Re: Oil-The Significance of Backwardation.

It’s not the current price of forward prices that determines future spot prices, but rather it’s the SHAPE of the forward curve.

With the curve backwardated $9 to ’23, history predicts that more often than not, much higher spot prices will follow.

Spent the day looking at historical contango-to-backwardation flips, and in 7 out of 11 such scenarios since 1988, spot prices were significantly higher in the following year.