Technology

A market condition in which the futures price of a commodity is higher than its expected spot price at delivery, meaning buyers pay a premium to lock in supply for the future. It signals that markets anticipate higher costs or tighter supply ahead. Contango is common in oil and gas markets and affects sovereign wealth funds and energy exporters across the Gulf, Central Asia, and Russia who hedge revenues through futures contracts.

“Brent crude slipped into deep contango after OPEC+ signaled output increases, prompting Gulf producers to reassess their hedging strategies for 2025 revenues.”