By looking at the Brent and WTI curves I remember Something that Gartman said many times in his morning Missive,Backwardation is bullish.The reasons ” why” are part of the discussion but not for today’s by simply looking at the curve,prices higher in the front months vs the backs one can infer that supply is tight ,and prices may continue higher.I paraphrase Gartman want to play it from the long side when price structure like this
Brent curve today, brown line vs 1 week ago green line, the backwardation expanding in the front switch quite aggressively over time frame.Without looking too much into details the first thing I would say is that supply is getting tighter vs last weeks thinking
Below the Cl Curve,Brown Line today, green one week ago Front few months moving higher ,eliminating the contango and moving closer backwardation. The Cl curve moves to complete backwardation,Front higher the back months starting with September Contract.Big Draws expected from storage,higher exports any maybe just more demand as refiners exit maintenance causing the tightening or rallying in the front month Crude spreads. WTI curve not as Bullish as brent
What is bullish is the RBOB Curve take along at how much the front part of the curve has rallied vs 1 week ago, extending or expanding the difference between the front months and Deferred.