WTI Moves Into Sharp Backwardation

WTI Moves Into Sharp Backwardation

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.

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