ConocoPhillips CEO Ryan Lance expects the crude oil market to flip into contango, a trading pattern where future oil contracts trade at a premium to near-term barrels. Lance shared this outlook during a fireside chat at the CERAWeek by S&P Global conference in Houston.

The contango structure suggests market expectations of ample supply or weaker near-term demand, contrasting with the current backwardation where near-term prices exceed future ones. This shift could impact oil storage economics and trading strategies across the sector.

Lance's prediction carries weight given ConocoPhillips' position as a major U.S. oil producer. A move to contango would signal changing market dynamics that could affect everything from storage costs to hedging decisions for energy companies.