Producers are Scaling Back Future Data Hedges

Crude oil prices are trading sideways, but it appears that producers along with hedge funds believe prices will continue to climb.  The term-structure of crude oil shows that a robust backwardation remains in place, but below the average for 2018. The range has been substantial, rising as high as $7 per barrel for the December red December spread, to a low of $3 per barrel. A backwardation shows that demand…