Crude oil prices are trading at 7-month lows this morning following data showing the amount of oil stored in tankers reached a new high of 111.9 million barrels earlier this month.  Note the chart below is showing the 4-week average, which hasn’t yet made a new high.  This clearly isn’t what OPEC was wanting to see with their production cuts.

Persistent Surplus

You can see the issue developing in the spreads recently.  The chart below shows the one-year calendar spread in WTI futures.  After taking a few attempts at inverting, the futures spread has fallen in recent weeks as it is becoming clearer the OPEC supply cuts are not yet having their desired results.

WTI Futures One Year Spread

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