Oil Futures' Rare ‘Smile' Fascinates Morgan Stanley as Glut Seen
The global oil market is in very rare territory right now, with a pricing pattern that points to near-term tightness for crude while also flagging a 'meaningful surplus' further out, according to Morgan Stanley.
'The Brent forward curve has an unusual shape at the moment: downward sloping across the first nine contracts and upward sloping thereafter,' analysts including Martijn Rats and Charlotte Firkins said in a note. 'This is so unusual that, in fact, there is little historical precedent,' they said.
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