On March 11, the US crude oil April 2019 futures closed ~$1.7 below the April 2020 futures. On March 4, the futures spread was at a discount of $1.8. On March 4–11, US crude oil April futures rose 0.4%.
The market sentiment towards the oil demand and supply situation is reflected in the futures spread. Usually, a contraction in the discount is accompanied by a rise in oil prices. In the last five trading sessions, the spread’s discount contracted and US crude oil prices rose 0.4%. The fall in the global oil supply might have supported the prices and increased the bullish sentiments for oil.
On March 4–11, oil-weighted stocks Apache (APA), Occidental Petroleum (OXY), and Oasis Petroleum (OAS) fell 2.7%, 4.1%, and 5.3%, respectively, and outperformed their peers. The remaining oil-weighted stocks ended in the red.
As of March 11, the US crude oil futures contracts for April and December were priced in ascending order. The price pattern is a negative sign for ETFs that follow US crude oil futures like the ProShares Ultra Bloomberg Crude Oil ETF (UCO) and the United States 12 Month Oil ETF.