Insight

Oil prices: unwinding contango storage in the US

This report is currently unavailable

Contact us

Submit your details to receive further information about this report.

For details on how your data is used and stored, see our Privacy Notice.
 

- Available as part of a subscription
- FAQ's about online orders

28 May 2015

Oil prices: unwinding contango storage in the US

Report summary

A contango futures market provides risk management companies (RMC) with the economic incentive to hold inventory in an oversupplied market. Buying and storing physical crude oil in Cushing, OK while selling deferred WTI futures contracts is an excellent example of crude oil contango storage. As the crude oil market rebalances and the risk of holding inventory is reduced, the difference between physical crude oil price and the deferred futures contract price will decrease.

Table of contents

  • Summary
  • Example of Q1 2015 contango storage play, Mark to Market performance and resulting profitability
  • Daily Mark-to-Market (MTM) Accounting

Tables and charts

This report includes 3 images and tables including:

  • Building and Liquidating the Contango Position
  • Q1 2015 Contango Storage
  • Mark to Market (MTM)

What's included

This report contains:

  • Document

    Oil prices: unwinding contango storage in the US

    PDF 304.40 KB

Other reports you may be interested in

Browse reports by Industry Sector