U.S. benchmark oil futures settled higher on Tuesday, getting a lift from global supply cuts and signs of improving demand, following a volatile trading session that ended with the expiration of the June contract.
West Texas Intermediate crude-oil prices settled in backwardation on Monday, a condition in which the spot price and nearby futures are bid higher than contracts for later delivery. The June WTI Nymex contract price also ended Tuesday above the July contract, which is now the front month.
That has marked a shift from the contango trade, in which later dated futures are bid higher than nearby contracts, signaling a near-term supply glut and offering incentive to store a commodity for future use.
Reabold Resources plc (LON:RBD) is an investor in near-term, high growth upstream oil & gas projects where an injection of its capital facilitates near-term activity. Reabold’s assets include Monroe Swell, West Brentwood & Grizzly Island, in California, US and West Newton in the UK.