On February 21, oil price soared to $99.27.
'The advent of a market where future oil is more expensive than current oil is called contango and this has been happening over the last fortnight. (Contango is a term used in the futures market where the future delivery price of a commodity is greater than the cash or spot price.)'
'Although the forward curve is not quite in full contango it is only a matter of a few cents this way or that. The thing is $141 in 2016 is really not any kind of reflection on what the price of oil will be in 2016, we have seen repeatedly over the past few years that futures markets cannot predict prices.'
Image: US Senator Patrick Leahy (D-VT) speaks in front of a poster of a one-dollar bill during a hearing before the Senate Judiciary Committee May 21, 2008 on Capitol Hill in Washington, DC. The hearing was to address the skyrocketing price of oil. | Photograph: by Alex Wong/Getty Images
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