Crude contango: As inventories build, oil prices do strange new dance

On Wednesday, the Energy Information Administration reported that crude inventories jumped by 4.7 million barrels for the week ended Feb. 6. Not only was this much more than the expected increase of 3.4 million barrels, but it serves as further proof that oil inventories continue to build.

It is this supply glut that has led to what's known as a contango price structure in the oil market.