Contango/Backwardation in oil?

[crgarcia]

What are your views on Contango/Backwardation and oil prices?

For example now oil prices are going up, yet futures are in backwardation:
http://www2.barchart.com/dfutpage.asp?sym=CB&code=BSTK&section=energies
http://www2.barchart.com/dfutpage.asp?sym=CL&code=BSTK&section=energies

 

[rubibond007]

backwardation = bullish
Contango= bearish

 

[crgarcia]

Quote from rubibond007:

backwardation = bullish
Contango= bearish

In the very short term?
Why?

 

[rubibond007]

Backwardation is a market condition where spot prices exceed forward prices. Contango is the opposite condition, where forward prices exceed spot prices.
the prevailing condition reflect immediate supply and demand. If crude oil is in contango, it may indicate immediately available supply. Backwardation can indicate an immediate shortage. Anything that threatens the steady flow of oil around the world, tends to drive the oil market into backwardation.