Brent crude’s front-month spread has moved into contango for the first time since February, with the near-month contract priced below the next-month contract, after a U.S.-Iran agreement reopened the Strait of Hormuz and increased oil supply in the Middle East.
According to Odaily, this market structure is typically seen as signaling expectations of oversupply.
The report said the shift is the latest in a series of signs that the oil market is weakening as physical crude premiums decline.
Earlier today, Brent crude fell below $75 per barrel for the first time since the outbreak of the Iran war.
The report added that Dubai’s market in the Middle East has recently shown a similar move ahead of Brent’s shift into contango.
PRECIOUS METALS | Brent Crude Spread Shifts to Contango for First Time Since February
2026-06-24 14:14:04
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