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StevieJ
Posts: 20,174 Forumite
This Oil price contango seems a good deal, how do we profit 
Buy oil now current price and sell now future price, difference storage costs and profit. :beer:
Buy oil now current price and sell now future price, difference storage costs and profit. :beer:
'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
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This Oil price contango seems a good deal, how do we profit
Buy oil now current price and sell now future price, difference storage costs and profit. :beer:
Bit late on tht mate, contango is closing fast, but if you can afford to rent a supertanker you just might still be able to make a buck if you quick.
Hope for the best.....Plan for the worst!
"Never in the history of the world has there been a situation so bad that the government can't make it worse." Unknown0 -
An article I only caught the back end of, on Bloomberg today, mentioned contango and said that it was highly unusual and normally a very bullish market signal. I am not sure of the context
'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
An article I only caught the back end of, on Bloomberg today, mentioned contango and said that it was highly unusual and normally a very bullish market signal. I am not sure of the context
You don't really see it in the OIl market at thie sort of size very often, I've heard people say it's bullish, not 100% sure on that, other than the implication theat people expect oil to be priced much higher in the future, makes it very hard to hold oil though long term as you're rolling the contracts up hill, ie even if oil price stands still you are paying more for the next month contract as you roll into it, so effectively you are losing money, good tosee it fade, Last month the 12th month contract was trading at a $17 premium to the front month at $35 I think, so that was a 50% premium if you could buy front month and store it selling 12 months out.
Gap is down to $7 now. front month - 12th monthHope for the best.....Plan for the worst!
"Never in the history of the world has there been a situation so bad that the government can't make it worse." Unknown0 -
Yes I think Shell were storing it on oil tankers.'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0
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Yes I think Shell were storing it on oil tankers.
Yes it was good to see that, reduces the over supply at the front end of the curve, takes the pressure off my positions :T never thought I'd have a good word to say about big oilHope for the best.....Plan for the worst!
"Never in the history of the world has there been a situation so bad that the government can't make it worse." Unknown0 -
You don't really see it in the OIl market at thie sort of size very often, I've heard people say it's bullish, not 100% sure on that, other than the implication theat people expect oil to be priced much higher in the future, makes it very hard to hold oil though long term as you're rolling the contracts up hill, ie even if oil price stands still you are paying more for the next month contract as you roll into it, so effectively you are losing money, good tosee it fade, Last month the 12th month contract was trading at a $17 premium to the front month at $35 I think, so that was a 50% premium if you could buy front month and store it selling 12 months out.
Gap is down to $7 now. front month - 12th month
very informative post dude0
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