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Last week's crude oil numbers tell an interesting story. The WTI 12-month spread tightened by 30 cents—that's a 49% move—and we're now sitting in contango territory past April. Not exactly bullish signals.
Front-month contracts? Down $2.03, dropping from $60.09 to $58.06. That's roughly a 3% slide in one week ending November 21.
What's happening here is the curve flipping structure. When near-term prices fall harder than deferred months, traders start repositioning. Contango means storage plays might look attractive again, but it also signals weaker immediate demand.
OPEC's probably watching these moves closely. Price pressure at these levels changes the game for production decisions heading into year-end.