Skip to content
Subscriber Only

Oil Market Sends Most Bullish Signal in Months

  • WTI spread goes backwardated for first time since February
  • Vaccine news, prospects for second half of 2021 support move
Updated on

The oil futures curve, an important gauge of trader bullishness, has strengthened to levels last seen in the early days of the pandemic as demand from Asian buyers surges and optimism grows for successful Covid-19 vaccines.

Two of the oil-market’s most-watched inter-month price spreads -- one denoting short-term strength, the other reflecting an improving longer-term outlook -- this week flipped into what traders call backwardation, a structure that’s generally seen as reflecting tighter conditions.