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Contango is a situation in which the futures price (or forward price) of a commodity is higher than the expected spot price of the contract at maturity. [1] In a contango situation, arbitrageurs or speculators are "willing to pay more [now] for a commodity [to be received] at some point in the future than the actual expected price of the ...
The oil-storage trade, also referred to as contango, is a market strategy in which large, often vertically-integrated oil companies purchase oil for immediate delivery and storage—when the price of oil is low— and hold it in storage until the price of oil increases. [1]
The situation where the price of a commodity for future delivery is higher than the expected spot price is known as contango. Markets are said to be normal when futures prices are above the current spot price and far-dated futures are priced above near-dated futures.
The weekly report details trader positions in most of the futures contract markets in the United States. Data for the report is required by the CFTC from traders in markets that have 20 or more traders holding positions large enough to meet the reporting level established by the CFTC for each of those markets. 1 These data are gathered from schedules electronically submitted each week to the ...
Oil traders, Houston, 2009 Nominal price of oil from 1861 to 2020 from Our World in Data. The price of oil, or the oil price, generally refers to the spot price of a barrel (159 litres) of benchmark crude oil—a reference price for buyers and sellers of crude oil such as West Texas Intermediate (WTI), Brent Crude, Dubai Crude, OPEC Reference Basket, Tapis crude, Bonny Light, Urals oil ...
This situation is an extreme case of contango. [23] Assess WTI prices were affected, and the WTI spot price dropped to -$36.98 on April 20. [ 27 ] At the same time, Mars crude oil produced in the US Gulf Coast (USGC) settled at -$26.63, and Middle East exporters who uses ASCI (of which Mars is a component) as the selling price benchmark had to ...
This pattern of falling prices is known as a contango. Figure 3.10 depicts these price patterns." Financial Lexicon, Banks, Palgrave MacMillan, 2005, p. 76 "CONTANGO A market state where FUTURES prices are higher than expected SPOT prices and decline as contract maturity approaches." Difficult to pick a user name 10:48, 22 May 2008 (UTC)
"Petrocurrency" or (more commonly) "petrodollars" are popular shorthand for revenues from petroleum exports, mainly from the OPEC members plus Russia and Norway.Especially during periods of historically expensive oil, the associated financial flows can reach a scale of hundreds of billions of US dollar-equivalents per year – including a wide range of transactions in a variety of currencies ...