Contango - Financial definition
Concise definition of the term contango
The term contango describes a market situation where forward prices for a certain product are higher than spot prices.
Comprehensive definition of the term contango
This term is most commonly used in oil markets but are also in certain other commodities and energies markets. In oil markets, the prevailing condition may reflect immediate supply and demand. If, for example, crude oil is contango, it may indicate immediately available supply.
Opposite: backwardation