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The shocking reason for rate hikes.

Eurodollar University

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Cantango in the WTI Curve Is All About Demand

Since the beginning of this year, crude inventories have risen by a massive 50.8 million barrels. Food production is for the second week in a row, the highest in several years but barely higher than what it has been consistently over the last seven months since around August. As crude prices started to fall, production of crude actually tailed off and plateaued over those same seven months. What that then means is that cantango in the crude curve is all about demand. The fact that there is any cantango at all indicates serious concerns about demand, demand for oil, demand for gasoline.

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