Key Corner of US Oil Market Is Flashing Signs of Supply Glut
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Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000A corner of the US crude market closely watched by physical traders is signaling oversupply in the latest indication that a global glut has reached domestic shores. Light, sweet West Texas Intermediate at the Magellan East Houston terminal is trading 12 cents a barrel cheaper than later-dated oil in a bearish structure known as contango. What’s more, the Gulf Coast barrels have been in contango almost every day since October and show no signs of flipping even as suppliers try to drain inventories to avoid year-end taxes.