Oil Curve May Signal Flood of Supply Coming Back to Market

The video discusses a 2% rally in crude oil prices, focusing on the changes in the oil curve, particularly the contango structure where current prices are much lower than future prices. This structure is being reduced rapidly, a rare occurrence historically, making oil storage uneconomical. The video explores the potential market implications, including whether stored oil will flood the market, regardless of purchases by India and China.

What does the term 'contango structure' refer to in the context of oil prices?

What historical context is provided regarding the speed of reduction in the contango structure?

How has the reduction in the contango structure affected oil storage economics?

What implications might arise from a potential flood of oil in the market?

How might the purchasing decisions of India and China influence the oil market?