Crazy Move in Front-Month Crude

The difference between the front-month and next-month contract for crude is at a whopping 12%!  The front-month contract rolls over today, so a massive short squeeze seems to be taking place.  As shown in the second chart below, while very uncommon, this kind of spread has happened in the past.  Just another crazy data-point in a crazy market.

click to enlarge

Comments

[JasonC:]

Short people got, no reason...
Short people got, no reason...
Short people got, ...

2008 Sep 22 04:24 PM

[user225084-...:]

Excellent article. Marketwatch got this one totally wrong. They were not aware at all that the $130/barrel peak was for TODAY ONLY.

2008 Sep 22 04:42 PM

[maelstrom:]

Another excellent contribution, gentlemen , thank you

2008 Sep 22 06:44 PM

[Kunst:]

JasonC, thanks for your wisdom.

2008 Sep 22 10:33 PM

[dafay:]

Thanks for posting this!

2008 Sep 23 08:27 AM