The oil markets have been oversupplied over the past few months thanks to overall weak demand following warmer than expected weather in Europe. The U.S. crude market started signaling oversupply in November, the first time supply exceeded demand in 2022. The front-month spread, traded in contango in November ahead of the December contract’s expiry. Front-month spread is used to gauge short-term supply-demand balances. Luckily, the rest of the market retained a bullish structure known as backwardation, an indication that the bearishness could…
