Brent Enters Contango for First Time Since Iran War Began as Gulf Supply Surges

By Georgina McCartney

HOUSTON, June 24 (Reuters) – Prices of Brent crude oil for second-month delivery traded higher on Wednesday than prices for prompt delivery for the first time since the Iran war started in late February, signaling increased near-term supply.

Brent, the global benchmark, traded 12 cents higher for contracts delivering in September versus those with August delivery, implying the market is pricing in ample prompt supply but fewer barrels in the coming months. 

“We have the prospect of a big rush in physical supply out of the Arab Gulf. So we are in a mini glut for now as