Reuters  Aug 20  Comment 
U.S. crude imports topped 8 million barrels per day (bpd) last week for only the second time this year, spurring an unexpected rise in stockpiles and sending U.S. oil prices down to a fresh post-crisis low.
Financial Times  Jul 23  Comment 
‘Contango’ is sign of high demand in contracts for immediate delivery
OilVoice  Jun 15  Comment 
Contango Oil Gas Company NYSE MKT MCF announced today the discovery and successful completion of the Elliott 1H well 80 WI in the Muddy Sandstone formation in Weston County Wyoming N. Cheye
Financial Times  Jun 12  Comment 
Beware the lure of fast money in the oil carry trade, warns John Dizard
Reuters  Jun 3  Comment 
The vanishing contango in U.S. crude oil futures points to a sharp draw down in crude stocks over the next few months as the incentive to store excess oil disappears.


This article refers to a futures concept. For the oil & gas company, see Contango Oil & Gas Company (MCF).

Contango means the price of a commodity for delivery at a future date is significantly higher than the current or "spot" price, which makes it profitable for companies to store the commodity and enter into contracts to sell futures contracts on the commodity, even after accounting for storage costs and opportunity cost of capital (i.e. money tied down on the inventory not earning a return).

The situation persists untill the futures prices come down or current prices go up or the cost of storage becomes very high.

This situation is also referred to as an upward sloping forward curve.

The opposing market condition to contango is backwardation.

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