Identify and describe the differences between normal and inverted markets

FRM AIM: Identify and describe the differences between normal and inverted markets
Properties Normal Markets Inverted Markets
Definition Increase in settlement price over time Decrease in settlement price over time
Other Definitions Long term contract price is higher as the duration of the contract increase Short term contract price is higher than long term contract price
Fundamental reason for such markets Demand for good in long term that drive up the price Demand for good in short term that drive up the price