The Single Biggest Bullish Catalyst For Oil

One of the key objectives for OPEC is to bring down
inventories, a goal that has been elusive this year. But if the oil
futures curve is anything to go by, the oil market is showing signs
of tightening. Brent futures have recently begun to exhibit a
state of backwardation, which is when near-term oil futures trade
at a premium to contracts dated further off into the future. This
is the first time in years that backwardation has occurred, and
most analysts are taking it as a sign that the oil market finally
could be getting closer to rebalancing.…

One of the key objectives for OPEC is to bring down
inventories, a goal that has been elusive this year. But if the oil
futures curve is anything to go by, the oil market is showing signs
of tightening. Brent futures have recently begun to exhibit a
state of backwardation, which is when near-term oil futures trade
at a premium to contracts dated further off into the future. This
is the first time in years that backwardation has occurred, and
most analysts are taking it as a sign that the oil market finally
could be getting closer to rebalancing.…