Shale Firms Go Short in Long Market to Give Oil a Mullet: Chart

(Bloomberg) -- The oil market is starting to emulate the flowing locks of Andre Agassi at the 1987 Wimbledon Championships, or Billy Ray Cyrus in the Achy Breaky Heart era. The futures curve for West Texas Intermediate crude has developed into a “mullet-like structure,” RBC Capital Markets LLC analysts including Mike Tran said in a note. Near-term contango shows a market that is still oversupplied, while the backwardated portion of the curve shows that long-dated futures have been driven down by shale producer hedging, according to RBC.

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