Latest / Energy Economics with Fexingo: Oil Prices, Renewables, and the Cost of Power
How Oil Futures Contango Is Reshaping Producer Hedging
Episode 134 of Energy Economics with Fexingo dives into contango—a market structure where oil futures trade above spot prices. As of July 24, 2026, WTI crude is at $91.35 per barrel, up nearly 10% in five days, and Brent is above $100. Lucas and Luna explain why contango is back after months of backwardation, how it changes hedging strategies for producers like ExxonMobil and Chevron, and what it signals about supply glut fears versus short-term demand. The hosts also break down the mechanics of storage arbitrage and the impact on the XLE energy sector ETF, which has gained 2.9% this week. A…
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