Oil Market Braces for Contango and Shale Slowdown

Oil Market Braces for Contango and Shale Slowdown

The prospect of a contango is casting a shadow over oil markets, with the entire 2026 WTI futures curve now trading below $60 per barrel

Oil market braces for contango and shale slowdown – Oil & Gas 360

(Oil Price)– The prospect of a contango is casting a shadow over oil markets, with the entire 2026 WTI futures curve now trading below $60 per barrel—beneath breakeven levels for most new shale wells. TotalEnergies CEO Patrick Pouyanné and Vitol’s Russel Hardy warn that prices this low could cut U.S. shale output by 200,000 to 300,000 barrels per day next year, tightening supply just as demand steadies. Backwardation Fades: Crude Market Signals T