Crude Contango

Betting on a normalization of the oil futures term structure.

Today, OPEC+ (OPEC and non-OPEC participating countries) announced an adjustment to their level of overall crude oil production to 41 million barrels per day (mbd) starting in January 2024, which equates to a 1mbd production cut. On April 3, 2023, they had already announced a 1.15mbd cut for the remainder of this year effective at the beginning of May 2…