Middle East benchmark crude grades flip to contango as easing supply concerns follow U.S.-Iran negotiations progress.
Dubai and Murban crude futures moved into contango on Tuesday, signaling reduced fears over immediate supply shortages from the Middle East. The shift follows optimism around a potential U.S.-Iran deal, which could boost output from the region’s top oil exporters.
The contango structure—where future contracts trade at a premium to near-term ones—last appeared before the February 28 conflict escalation. Prior to this, backwardation had dominated, reflecting tight prompt supply conditions.
The change reflects market expectations of a gradual supply recovery, though no immediate price surge or sell-off was reported in early trading.