U.S. oil futures forward structure reflects doubt over OPEC restraint | Reuters:
"The forward curve for U.S. crude oil futures has steepened in recent days as worries that proposed OPEC supply cuts won't hold, or even materialize, turned the market's outlook for 2017 deliveries more bearish relative to longer-term contracts.
With the Organization of the Petroleum Exporting Countries dragging out negotiating the terms of a production cap, traders are now betting that a supply glut that has depressed crude prices this year will take longer to alleviate than previously anticipated, due to disagreements among OPEC members.
This is reflected in the prices for all futures months comprising the forward structure for West Texas Intermediate (WTI) crude, which is the U.S. benchmark, while Brent crude is the global benchmark."
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