Steep Contango Reflects Bloated Inventories

Prices of Brent crude oil are attempting for form a bottom.  Traders are probing the downside and seeing if it is possible to generate a short squeeze.  With current inventories at 80-year highs in the United States, it will be difficult for oil prices to mount a significant comeback.

Petroleum inventory data for countries in the Organization for Economic Cooperation and Development show the relationship…