Comments on: Contango Isn’t A Dance In Argentina: It is a Shot at Windfall Profits http://www.moneymorning.com/2009/01/22/contango/ Investment News Provider Thu, 19 Nov 2009 15:36:16 -0600 http://wordpress.org/?v=2.8.4 hourly 1 By: Buy, Sell, or Hold: Profit From the Projected Oil-Price Rebound With Diamond Offshore http://www.moneymorning.com/2009/01/22/contango/comment-page-1/#comment-17364 Buy, Sell, or Hold: Profit From the Projected Oil-Price Rebound With Diamond Offshore Mon, 09 Mar 2009 09:33:48 +0000 http://www.moneymorning.com/?p=4462#comment-17364 [...] of oil futures prices is showing a very marked upward slope, known in the commodities business as a forward curve in “contango.”  This means that – the farther out we go – the higher and higher oil [...] [...] of oil futures prices is showing a very marked upward slope, known in the commodities business as a forward curve in “contango.”  This means that – the farther out we go – the higher and higher oil [...]

]]> By: Contango and storage arbitrage | the daily john http://www.moneymorning.com/2009/01/22/contango/comment-page-1/#comment-15531 Contango and storage arbitrage | the daily john Thu, 05 Feb 2009 18:42:23 +0000 http://www.moneymorning.com/?p=4462#comment-15531 [...] there have been reports that tanker leasing costs are up dramatically on storage demands, the mid-range outlook is not strong for the tanker industry as ship builders [...] [...] there have been reports that tanker leasing costs are up dramatically on storage demands, the mid-range outlook is not strong for the tanker industry as ship builders [...]

]]> By: Contango and storage arbitrage « Knowledge Problem http://www.moneymorning.com/2009/01/22/contango/comment-page-1/#comment-15316 Contango and storage arbitrage « Knowledge Problem Sun, 01 Feb 2009 16:56:18 +0000 http://www.moneymorning.com/?p=4462#comment-15316 [...] there have been reports that tanker leasing costs are up dramatically on storage demands, the mid-range outlook is not strong for the tanker industry as ship builders [...] [...] there have been reports that tanker leasing costs are up dramatically on storage demands, the mid-range outlook is not strong for the tanker industry as ship builders [...]

]]> By: Exxon Records Biggest Profits in U.S. History http://www.moneymorning.com/2009/01/22/contango/comment-page-1/#comment-15283 Exxon Records Biggest Profits in U.S. History Fri, 30 Jan 2009 22:17:07 +0000 http://www.moneymorning.com/?p=4462#comment-15283 [...] Money Morning: Contango Isn’t A Dance In Argentina: It is a Shot at Windfall Profits [...] [...] Money Morning: Contango Isn’t A Dance In Argentina: It is a Shot at Windfall Profits [...]

]]> By: John C http://www.moneymorning.com/2009/01/22/contango/comment-page-1/#comment-14718 John C Thu, 22 Jan 2009 22:47:01 +0000 http://www.moneymorning.com/?p=4462#comment-14718 After reading the above article (Contango isn't a dance in Argentina, it is a shot at windfall profits.) I began analyzing the recommendations. Specific to the ETF's listed; USO, OIL. USO reflected over 12% in short interest compared to its peer group and individual prominent oil companies that collectively averaged 1%. USO was your first mentioned. Can you explain why their is such a high % of short interest against this position? After reading the above article (Contango isn’t a dance in Argentina, it is a shot at windfall profits.) I began analyzing the recommendations. Specific to the ETF’s listed; USO, OIL.

USO reflected over 12% in short interest compared to its peer group and individual prominent oil companies that collectively averaged 1%. USO was your first mentioned. Can you explain why their is such a high % of short interest against this position?

]]> By: Stuart S http://www.moneymorning.com/2009/01/22/contango/comment-page-1/#comment-14704 Stuart S Thu, 22 Jan 2009 19:07:49 +0000 http://www.moneymorning.com/?p=4462#comment-14704 Interesting article. It is amazing how that when one knows something about a subject reporters almost always get something wrong. I trade oil and there is indeed a currnet contango situation. However on tuesday the June contract settled at 48.28 and March, the effective front month settled at 40.84, a difference of under $8. The $38.81 refers to February which was going off the board and effectively irrelevant. So the cost of storage at 90c for 4 months (not 5) is $3.60. So total profit potential is everything goes according to plan is more like $4 not the $8 quoted in the article. Author uses fuzzy math. Interesting article. It is amazing how that when one knows something about a subject reporters almost always get something wrong. I trade oil and there is indeed a currnet contango situation. However on tuesday the June contract settled at 48.28 and March, the effective front month settled at 40.84, a difference of under $8. The $38.81 refers to February which was going off the board and effectively irrelevant. So the cost of storage at 90c for 4 months (not 5) is $3.60. So total profit potential is everything goes according to plan is more like $4 not the $8 quoted in the article. Author uses fuzzy math.

]]> By: Charles http://www.moneymorning.com/2009/01/22/contango/comment-page-1/#comment-14703 Charles Thu, 22 Jan 2009 18:26:33 +0000 http://www.moneymorning.com/?p=4462#comment-14703 Will USO et al actually work in a Contango situation?? I have read several articles that these funds that use futures will not make money if oil rises since its already built into futures prices. True? Not True? Will USO et al actually work in a Contango situation?? I have read several articles that these funds that use futures will not make money if oil rises since its already built into futures prices. True? Not True?

]]>