Index buyers warping Brent Crude's price curve a boon for opportunists

ctas

While hedge funds have been blamed by some for stoking Brent Crude prices, experts say the emergence of commodity indices is bending the curve between spot and forward prices, and opening up trading opportunities in the process.

Russell Newton, principal at Global Advisors, a London-based CTA that trades industrial commodities, says Brent Crude's spot is at $45 and the back of the curve sits at $40. Usually the curve between the two points will slope gently, but index money is changing that,