Opec sees contango easing as crude stockpiles decline

Organisation of Petroleum Exporting Countries (Opec) sees a depressive contango (future price exceeding current price) that had built up in first two months of 2009, easing in March.

The impact of the development was evident on freight rates of very large crude carriers (VLCCs) and smaller crude carriers, Opec said. Analysts say the contango particularly eased towards the last quarter of March.

Yesterday, crude for June delivery at the Intercontinental Exchange (ICE) stood at $52.88. Dated Brent spot stood exactly a dollar below at $51.88 a barrel. On the other hand Brent spot prices have been higher than the WTI futures for the past few weeks.
EmiratesBusiness