I think part of the shift relates to risk management ON THE PART OF PRICE MAKERS - what is the incentive to short (or sell) oil years hence -i.e. 2016 (to buyers-customers) at a discount to the spot price/front month in a tight market. The price maker has to sit on 7 years of "disruptions" and needs the price to fall just to be in court. As oil prices rise, nominal swings become bigger, and therefore a premium for long dated prices would be natural. Have been expecting this shift to kick in, above 100, for best part of 5 years. Think the curve should add 10 bucks per year (i.e. 150 front/220-250 back end). Issue of storage is lack of availability of storage facilities and oil tankers for movement of cargo.

But believe the real driver right now is pre-positioning for news flow coming JUNE

However, it will have a major impact on policy-makers and sentiment if sustained: market expects higher prices and therefore more inflation, dollar devaluation. Hoarding could be spurred by "cheap" front end versus expensive back end - could significantly boost short term demand and the front contracts.