Bloomberg News

Gasoil Futures Move Into Contango Ahead of July Expiry on ICE

July 12, 2012

Gasoil for July moved into a discount, or contango, to the August contract before the front- month expiry today on the ICE Futures Europe exchange.

Benchmark heating oil futures for July were at $858 a metric ton at 11:51 a.m. London time ahead of their expiration today at 12 p.m. That’s 50 cents less than August, the more active second-month contract.

A contango market reflects rising near-term supplies or declining demand. The spread had traded in the reverse structure, or backwardation, since April 13. Prices fluctuated between the two structures today.

To contact the reporter on this story: Lananh Nguyen in London at lnguyen35@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net


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