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No, it’s not a dance craze. Contago is a condition of supply and demand, essentially a fancy word to say that prices for items, typically commodities, are cheaper now than they would be at some point down the line.
Anything that¿s sold in the futures market can be in a case of contango. Futures are exactly that: a contract to buy an item or asset at a price in the future. This is the case with oil, with traders buying and selling contracts to acquire a barrel of oil in months down the line. When a market is in contango, spot prices, or the price of a commodity if you were to buy it right now, are lower than forward prices.
Why is that important? Well, it usually tells you the supply of a given commodity is plentiful (since, according to Economics 101, a large supply usually leads to cheap prices).
Incidentally, if you think contango is a mouthful, its opposite condition is known by the equally tongue-tying term backwardation.
IRVING, Texas, May 05, 2008 (BUSINESS WIRE) —-ExxonMobil announced today it is committing more than $100 million to complete development and testing of an improved natural gas treating technology which could make carbon capture and storage more affordable and significantly reduce greenhouse gas emissions.
The company plans to build a commercial demonstration plant near LaBarge, Wyoming, where it will use ExxonMobil’s Controlled Freeze Zone(TM) technology, known as CFZ(TM). CFZ(TM) is a single-step cryogenic separation process that freezes out and then melts the carbon dioxide and removes other components including hydrogen sulfide, which is found in so-called sour gas. If successful, the process will reduce the cost of carbon dioxide removal from produced natural gas.
“This technology will assist in the development of additional gas resources to meet the world’s growing demand for energy and facilitate the application of carbon capture and storage, to reduce greenhouse gas emissions,” said Mark Albers, senior vice president of Exxon Mobil Corporation (NYSE:XOM).

foxbusiness.com