Contango or Backwardation

Did you see this?

With the expiration of the Nov. crude contract, Nymex crude futures flipped back into contango for the first time since Katrina hit, suggesting worries about short-term supply tightness have evaporated.

Crude futures were in contango, pricing progressively higher in the outer months, through most of the year as inventories continued to grow, but moved into "backwardation" Aug. 29, the day Katrina made landfall after tearing through the Gulf of Mexico.

And now, YOU know the REST of the story.