Just wondering if an energy guru can help me with some queries regarding the shape of the CL ($WTIC) oil futures curve. Thanks in advance for any help you can provide. Currently: August CL is about 50 cents more expensive than July, September is about 50 cents more expensive than August October about 35 cents higher than Sept Nov about 35 cents higher than Oct yet December 2012 is only about 80 cents more expensive than December 2011. *** Also, yesterday when CL rallied, the front months went up by more than the later-dated months. Yet today when CL is falling, the opposite is true. I see that the low in the December 2011 contract in March 2009 was at about $57, yet the front month at the time was in the low 30s. Q1: So why are the front months so much more volatile than later-dated months? Q2: Why is the (annualised) difference between near months so much more than the annualised difference between far months? Q3: (related to Q1 above) December 2011 is at about 102.70, yet December 2015 is at about 100.60. I understand that Dec 2011 is at a premium to the front month due to storage costs, but then: Why is December 2015 lower than December 2011, with 4 extra years to store?