Oil traders at the U.S. storage hub of Cushing, Oklahoma are betting stocks will fall by the most since early autumn, due to the twin effect of declining Canadian supplies and strong Gulf Coast demand. A big drop in inventories could throw more support behind oil prices that recently surpassed $50 a barrel for the first time since October, and cause the spread between prompt WTI to the second month to tighten. Those traders are seeing reduced flow on key pipelines headed to the Cushing storage hub, and therefore increasingly betting on tighter supply in coming weeks, and using bullish financial calendar spread options. Currently, the prompt month is at a discount to the second month, also known as “contango.” That has risen from a low of a $2.90-a-barrel discount in February […]