Backwardation

RBOB Gasoline: From contango to backwardation

Commodity Online Jun 18

Unlike last year gasoline has been leading the energy complex in recent months. RBOB gasoline prices have almost doubled since the start of the year compared to an increase of just 25% for heating oil. Presently it is in backwardation but the...

Contango Disappearing Fast: Backwardation And USO Profits Next?

Zero Hedge Mar 6

The recent run up in oil prices has resulted in some dramatic shifts along the crude curve. When we first discussed the contango effect (and some amusing risk free ideas as a result), the 12 month spread was roughly $25. Today's NYMEX...

Contango's Cost To Oil ETF Investors

Hard Assets Investor Feb 10

Real-time Inflation Indicator (per annum): 7.8% We at Hard Assets Investor have written about contango and backwardation many times. The message is worth repeating in times like these. Just what sort of times are these? And what the heck are...

More on Gold Backwardation

Your Financial Future Dec 14

More on Gold Backwardation By James Turk http://www.kitco.com/ind/Turk/turk_dec122008.html Over the last few weeks, there have been a lot of articles on the Internet about backwardation, i.e., when the price of commodities for delivery...

Tbills Yield Nothing, Gold is in Backwardation, and Shilling Hits it Out of the Park

World Beta - Engineering Targeted Returns and Risk Dec 10

I spent the past weekend in Colorado (go Broncos!), and looked through my father's library at some of my old books. I grabbed a copy of Shilling's Deflation to read on the plane ride home (which is currently listed for $600 since it is out of...

Gold Backwardation: Antal Fekete

Your Financial Future Dec 6

Red Alert: Gold Backwardation!!! -- Posted Friday, 5 December 2008 Antal E. Fekete Gold Standard University Live December 2, 2008, was a landmark in the saga of the collapsing international monetary system, yet it did not deserve to be...

Gold In Backwardation? Not So Fast ...

Hard Assets Investor Nov 26

Are there better technical signals for buying gold than forward rates? What really happened in gold last week Why gold didn't rally during the financial crisis Do negative lease rates mean a rally is on its way? There was a lot...

Gold In Backwardation? Not So Fast …

Hard Assets Investor Nov 26

What really happened in gold last week. Why gold didn't rally during the financial crisis. Do negative lease rates mean a rally is on its way? There was a lot of excitement among gold aficionados last week. A $34-an-ounce...

Oil’s Creeping Backwardation

Hard Assets Investor Sep 19

Newsies covering the financial beat can't really complain about markets like these. There's no lack of subject matter, that's for sure. The once-maligned "crisis du jour," has been transmogrified into the "crisis de l'heure." I-banks are falling...

Enhanced Oil Returns

Hard Assets Investor May 20

Pssst! Wanna make a few extra bucks off the oil market? Sure, you could have made handsome money being long crude oil this year. After all, NYMEX futures are up over 31% since the New Year's parties ended. The oil market's backwardation, though,...

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This article is part of WikiProject Definitions. Consider editing to improve it. View articles referencing this definition.

Backwardation means the price of a commodity for delivery at a future date is significantly lower than the current or "spot" price. This is an unusual condition, as a rational buyer will usually refuse to pay a higher price today if he is guaranteed a lower price tomorrow.

When it occurs, backwardation is usually the result of shortages.

The opposite of backwardation is Contango

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Backwardation

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