The Oil Market's Contango

In a tight oil market, the near term or the prompt end of the curve gets bid up because people are willing to pay a premium to get their hands on that barrel. In a tight physical market, a typical crude curve is what's known as back-radated. A lot of us thought it was going to be Chinese demand. That didn't seem to do it. And I think you could start to see more things like OPEC cuts or whether they're geopolitical disruptions.