Oil Contango Soars as Oklahoma Brims With Crude: Energy Markets

The article talks about an oil contango, which is a term used to describe an upward sloping prices for futures. Prices tend to have an upward sloping trend, when there is a high cost of carry, which is the cost of storage of the commodity. According to the article, on April 21 crude for delivery in June costs $1.95 a barrel less than for July. This is the biggest gap since Dec. 15. This gap was mainly caused by high storage costs of oil that were emerged by 5.8% increase of the level of inventory in Oklahoma storage.