WTI has been on a surge since the end of the first quarter, up around 13%. However, has now moved into shape backwardation trading at $102.97 for September delivery, $101.76 for October delivery and $97.72 for January delivery.
In addition, WTI’s rapid rise has not been matched by its counterparts despite the fact that some of them are likely to come from the same source:
- NY harbor RBOB: up less than 1% since March
- NY ULSD: down 3.1% since March
- Group 3 ULSD: down 1.1% since March 1
- Gulf Coast pipeline ULSD: down 2.5% since March 1
- LLS: down 2.5% since March 1
WTI is certainly exhibiting some strange trading patterns.
[…] short-term bounce is not supported by the market as WTI contracts for future delivery are in steep backwardation. For example, the WTI contract for delivery in December 2021 is trading at $79.61. The spread is […]