Supply surplus expectations emerge, Brent crude's near-month spread turns to contango for the first time since February

Odaily Planet Daily News: As the US-Iran agreement reopens the Strait of Hormuz and increases oil supply in the Middle East, the near-month spread of Brent crude has turned to contango for the first time since February, meaning the near-month contract price is lower than the next-month contract price.

This structure typically signals expectations of supply surplus. It is the latest in a series of signs indicating that the oil market is softening as spot crude premiums decline. Earlier today, Brent crude prices fell below $75 per barrel for the first time since the outbreak of the Iran war. Prior to Brent crude turning to contango, the Middle East Dubai market also showed a similar trend in recent days. (Jin Shi)