The expiring November WTI and the second month December WTI contract both closed below $100 per barrel for the first time since July. We have long bemoaned the extended the pattern of consolidation between 102 and 109, and now we have the beginnings of a breakout. Once again, the front month contract appears ready to expire in weak fashion, in a solid discount to the second month contract, which is indicative of weak cash market conditions. This weak or bearish market structure extends through the first several months of the price curve, before the curve indicates strength in Q1 of 2014.
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