Oil time-spreads sell-off extends, nearby backwardation at lowest since March 3
The decline in nearby oil time-spreads continued on May 28, 2026. The spread between the second and third month contracts reached its lowest level since March 3.
finance.yahoo.comThe sell-off in oil time-spreads extended through May 28, 2026. Nearby backwardation, measured by the spread between the second and third month contracts, fell to its lowest point since March 3. March 3 marked the early period of the war referenced in market data.
The current level matches readings recorded at that time. Market participants track these spreads to gauge near-term supply tightness. Lower backwardation indicates reduced immediate supply concerns relative to later months.
Key Facts
Story Timeline
2 events- May 28, 2026
Nearby oil backwardation reached lowest level since March 3.
1 source@JavierBlas - March 3
Oil backwardation last recorded at current low during early days of the war.
1 source@JavierBlas
Potential Impact
- 01
Traders may adjust positions in response to reduced near-term supply premium.
- 02
Lower backwardation could influence storage and inventory decisions.
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