Another possible canary in the inflation coal mine. Long-dated oil futures are back to $100…
(Another spike to $150 will do wonders for the global recovery).
FT: The furthest forward oil contract traded on exchanges – the December 2017 futures – rose last week to $99.97 a barrel for the Brent benchmark and to $99.43 for the West Texas Intermediate, the highest since last October. The prices have risen by 10 per cent in the past month…
Oil traders, company executives and analysts are split over the reasons for the rapid rise in long-dated prices.
Some say the rise reflects long-term oil supply worries, in spite of the impact of recession on global demand. Others say that with supply outpacing anaemic consumption, traders need the incentive of higher forward prices to store petroleum the world does not need.
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