Brent crude futures traded in backwardation on the London-based ICE Futures Europe exchange.
Front-month contracts moved into backwardation, a market situation where cargoes for earlier delivery cost more than later shipments, for the first time since Oct. 14.
“Brent moved fractionally into backwardation this morning on strong European demand and attractive margins,” JPMorgan Chase & Co. said in a note today.
The January delivery contract traded at $89.60 a barrel and February was 4 cents cheaper as of 3:08 p.m. local time, according to ICE data.
The Brent futures market was last in prolonged backwardation in the first half of 2008.