USO - death by contango - (Part 2)

Related Links .... USO vs. DBO - note the times from / to performance, usually on the condition of contango. finance.yahoo.com contango backwardation vs explained. www.investopedia.com NYMEX Crude Oil Futures cited futures.tradingcharts.com oil Seasonals - Article contain graphic. www.safehaven.com Frontline Tankers Homepage www.frontline.bm transcript of the video (two parts) follows ....... Part 2 .............. If oil prices collapse, but begins to sound for a floor thatwill often only show up in the futures contracts, usually for the summer. It may be surprising to find some people that the seasonal low high for oil prices around Jan / Feb, and the seasonality is often in the August / September, but it is. Therefore, the summer months in advance often get money when the dealer that falling oil prices reach a bottom speculate. It does not mean they are right, only that it received a lot of activity around the potential peak before the other months in the campaign.Right now, this has created a steep contango. So steep that, as you probably already have tankers were hired to thousands of dollars per day to oil by selling futures contracts at higher prices and lock in a guaranteed profit, as are all costs and revenues known in advance to be stored covered. Oil at $ 35 immediately, store it for three months for, say, $ 3 per barrel, and sell futures contracts for someone to come in three months for, say, $ 42 to buy. 10% holding plus for a three-month and aguaranteed ...



http://www.youtube.com/watch?v=QKsmaykLpvE&hl=en

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