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Trade the News – Oil Market Contango Returns

Trade the News – Oil Market Contango Returns

Contango is a situation where the futures price of a commodity is higher than the spot price. Contango usually occurs when an asset price is expected to rise over time. So, what are traders most likely to do? Well, they are most probably going to be buying low which means starting now, then to sell it later, at a higher price. Today we will be using the example of this ‘breaking news’, for the Oil & Gas markets and we will be applying some relevant setups/strategies onto correlated assets, riding along the Trend created by the above-mentioned risk event.

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