A small contango born out of COVID 19 Third Wave
Brent spread flipped into a small contango. Contango is a situation where the futures price of a commodity is higher than the spot price. Reason: Physical crude markets are indicating that demand is lower, much more so than the futures market. Background: a. New pandemic curbs; b. Slow vaccine rollouts in Europe Boris Johnson has warned the effects of a third wave of coronavirus will "wash up on our shores" from Europe. Extended lockdowns are being driven by the threat of a third wave of infections, with a new variant of the coronavirus on the continent. Con
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