OPEC cuts offset headwinds from slowing economy: Kemp | Reuters

OPEC cuts offset headwinds from slowing economy: Kemp | Reuters:

Oil traders seem increasingly convinced OPEC’s prompt action in cutting production will be enough to offset the impact of rising shale production and slowing global growth.

Brent futures prices have stabilized around $60 per barrel in recent sessions, well below the peak of over $85 at the start of October, but significantly higher than the trough of less than $50 in late December.

More importantly, Brent’s six-month calendar spread has strengthened from a contango (discount) of almost $1.80 per barrel to just 35 cents over the same period.