Oil Futures Market Finally Signals Supply Tightening

The oil futures market has strengthened this week, signaling that a market tightening could be on the way.     Following the latest announcements of fresh supply cuts from OPEC+ leaders Saudi Arabia and Russia, key spreads in the oil derivatives markets have started to show strength, according to Bloomberg’s estimates. Prompt spreads in the futures market have returned to backwardation, from contango.  Contango is the state of the market in which prices for delivery at later dates are higher than front-month prices—a…