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Oil Prices Are Surging, but Futures Are Falling. Why That’s a Bullish Sign.

Por: MarketWatch Business April 08, 2023

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While the nearest-term Brent crude futures, the international benchmark, were up 6.6%, to $85.05 per barrel, on the week through Thursday, futures expiring in December 2023 rose 4.6%, to $81.50. The fact that December futures are trading at lower levels than today’s prices looks bearish: Why buy oil stocks if oil prices will fall by year end? But the current trading pattern, known as backwardation, has actually been a bullish signal in the... + full article



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