Brent Crude in Backwardation on North Sea Supply Cut
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Crude oil futures in London for the earliest delivery were more expensive than later contracts for a second day, after settling at a premium yesterday for the first time in almost a year following North Sea field maintenance.
Brent crude futures on the city’s ICE Futures Europe exchange for August traded today at 25 cents more than their September equivalent. Yesterday was the first time the contract closest to expiration has settled above the subsequent month since Aug. 14. Before that date, front-month Brent contracts had not consistently traded at a premium since May 2008.