Crude oil market showed notable tightening in the spread structure for the week ending December 26. The WTI 12-month spread contracted by $0.08, representing a 36% weekly decline, while the 6-month spread narrowed $0.11 or 34% over the same period. Front-month futures edged up slightly, moving from $56.66 to $56.74 per barrel. This compression in longer-dated spreads reflects shifting expectations around global energy supply and OPEC production dynamics. Traders watching the crude oil complex should monitor how these contraction trends interact with seasonal demand patterns and geopolitical factors affecting oil and gas markets.
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SmartMoneyWallet
· 17h ago
Look at this spread structure compression... a 36% and 34% weekly decline, just hearing the numbers sounds a bit outrageous. The previous month's contract only moved by 8 points, yet the later futures are so tight? Clearly someone is adjusting positions, and OPEC is probably up to some tricks again.
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BackrowObserver
· 17h ago
This wave of oil price spread compression feels like the market is betting on when OPEC will cause some trouble again.
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0xLuckbox
· 17h ago
This round of oil price compression is quite intense; the spread has narrowed so much it feels like something's going to happen.
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PhantomMiner
· 18h ago
Wow, the spread is narrowing quite a bit. Is OPEC up to something again?
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BTCRetirementFund
· 18h ago
The recent spread contraction in oil prices is quite interesting, but it still feels like a game of betting on OPEC's moves...
Crude oil market showed notable tightening in the spread structure for the week ending December 26. The WTI 12-month spread contracted by $0.08, representing a 36% weekly decline, while the 6-month spread narrowed $0.11 or 34% over the same period. Front-month futures edged up slightly, moving from $56.66 to $56.74 per barrel. This compression in longer-dated spreads reflects shifting expectations around global energy supply and OPEC production dynamics. Traders watching the crude oil complex should monitor how these contraction trends interact with seasonal demand patterns and geopolitical factors affecting oil and gas markets.