Excited bull calves have been cavorting amid green shoots of narrowing contango spreads and encouraging benchmark differentials. To be sure, an earlier record premium of $ll-plus for Brent over Nymex crude futures came hurtling in this week to $1.30, as March Nymex took over as the front-month contract. Also, the contango - the pricing profile where prompt barrels trade at a discount to later deliveries - has narrowed sharply. Both developments have provided the bulls with a feast - but may also give them a hangover.
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