MacroVoices #333 Harley Bassman: Inflation, Bond Yields, VIX vs. MOVE, Demographics & More
Macro Voices
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What Is Backwardation in the Crude Oil Market?
Backwardation is a bullish signal in the crude oil market, or commodity markets. It means that there's not enough oil in the storage tanks for the normal cantango condition to exist. If you're willing to lock in a price to day for later delivery, you get a very steep discount. The discounts were so steep a year ago that most analysts were saying, this is crazy, steep backgradation. This has to be an anomaly associated with the ending of the covid pandemic and it's temporary.
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