Contango

Related Pages

• Sebei Xining Lanzhou Gas Pipeline
• Gas Atacama Pipeline
• Pony Express Crude Oil Pipeline
• Opal Pipeline
• Sisi Nubi Gas Field
• Serai Gas Field
• West East Gas Pipeline
• Visakhapatnam Refinery Expansion Project
• Ohanet Gas And Condensate Field
• Jintan Gas Field

Contango is a term used in the futures market to describe an upward sloping forward curve (as in the normal yield curve). Such a forward curve is said to be "in contango" (or sometimes "contangoed").

Formally, it is the situation where, and the amount by which, the price of a commodity for future delivery is higher than the spot price, or a far future delivery price higher than a nearer future delivery. This is a normal situation for equity markets.[1]

The opposite market condition to contango is known as backwardation.

---