So this is what I get from Izzy of Alphaville.
Fracking is JIT production for oil. It has the disadvantage of fast depletion rate but you more or less know where it is, all you have to do is drill. In the old days, after a crude price slump and production taken off, to increase production again takes time as you have to look for it and/or because the oil is in the harder areas to get it out off (which what I understand peak oil hypothesis is about, not that oil is running out, but it is/will be harder and harder to find it and produce it).
So there WAS a time lag which makes it possible for speculators to benefit from contango by storing excess oil.
That economic reason for oil storage is more or less invalidated by the JIT production of shale/fracking technology.
To make the story short, crude price will keep falling lower once contango speculators are out of the picture as they are currently cushioning the fall by soaking up some of the excess of supply over demand.
Somebody checks my reading comprehension.It has been a long time since I took the SAT test lol.