Oil Futures Curve Sends Warning Sign to Bullish Investors
- Prompt Brent crude spread points to potential surplus in 1Q
- Demand worries due to omicron variant spark oversupply fears
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The oil market flashed its biggest bearish signal in months on Tuesday, indicating oversupply could be on the horizon through the first quarter of 2022.
Brent crude for February settlement flipped to trade at a discount to the March contract for the first time since March, excluding the days when the contracts expire.