Five-year U.S. crude oil futures at record $30 premium

LONDON (Reuters) – U.S. crude oil futures for delivery in January 2014 are trading at a record $30 premium to current contracts, as investors bet that the long-term trend toward higher prices will remain intact despite oil’s slump to $50 a barrel.

U.S. crude oil futures — the global benchmark for oil prices — have collapsed by almost $100 a barrel since hitting an all time high above $147 a barrel in July. On Friday, U.S. crude for delivery in January 2009 sank to as low as $48.50 a barrel, the weakest price since May 2005.

But oil contracts for delivery in five years time have held stubbornly above $80 a barrel, with the January 2014 contract currently sitting at $81.26 a barrel.

Long-dated oil future contracts are seen as a gauge of how expensive the market thinks oil will be in five years time, and many investors believe that as the global economy recovers from its current malaise, crude prices will soar once again.

Reuters