Views on commodities and energy
The spread between the front month and second month oil futures continues to narrow.
The deep spread seen in earlier this year, caused primarily by slumping fuel demand due to the economic crisis, was heightened by the monthly of passive investment funds, especially the giant United States Oil Fund. On Feb. 6, when the fund last rolled its positions from the first to second month futures conracts, it held movre than 20 percent of the front month.
Analysts said that the move by the exchange traded fund to roll its front month positions to the second month over a four day period — rather than on just one day — may lesson the volatility of the shift.