Will Historic OPEC+ Cuts Work? Oil Timespreads Say Maybe Not
- Brent’s six-month contango widens even after output agreement
- Goldman Sachs says OPEC+ deal is ‘historic yet insufficient’
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Oil timespreads are showing the opposite of what was expected after a historic deal among global producers to slash output.
Brent crude’s six-month contango deepened Monday following the agreement that will curb production by nearly 10%. A market structure where the spot price of a commodity is lower than later-dated contracts, a contango typically indicates over-supply. Meanwhile, the prompt spread of the global benchmark crude also widened slightly.