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.
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