A surprisingly abrupt breakdown in U.S. crude oil spreads this week has strengthened some traders’ conviction of a decisive move below $40 a barrel, extending the early winter price slump. As traders rushed to dump expiring December West Texas Intermediate (WTI) futures on Friday, rather than take delivery in Cushing, Oklahoma, where storage space is dwindling, the spread versus the second month widened to as much as $2.90 a barrel, the most since 2011. The second-third month spread has tumbled more than 30 cents to -$1.35 a barrel, its lowest since April. “The contango will probably provide the fuel for us to get well and below $40,” said John McLane, chief investment officer at Mobius Asset Management in Scottsdale, Arizona. He has sold short prompt WTI prices while buying […]