Saturday, April 6, 2013

Bad Economic Omen: Crude Slips Into Contango

from Bloomberg News

"Front-month Brent crude settled lower than the second-month contract for the first time since June on concern that slower economic growth will reduce near- term demand.
"'The contango is an indication that the economy is in bad shape and oil demand is really slowing,' said Rich Ilczyszyn, chief market strategist and founder of commodities trading firm Iitrader in Chicago. 'There is probably more downside risk going forward.'”