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11 Pages

Contango - Futures Price and the 'Bid for Storage'


Contango - Futures Price and the 'Bid for Storage'

Report summary

The shape or time structure of the futures market is a powerful, real-time market signal that can complement fundamental supply/demand analysis and improve short term price forecast. The futures market discounts risk; the risk of supply shortages and the risk of high inventories and storage containment. Backward futures markets are consistent with a demand pull out of inventory while contango markets are consistent with a supply push into inventory.

What's included?

This report includes 1 file(s)

  • Contango - Futures Price and the 'Bid for Storage' PDF - 519.24 KB 11 Pages, 0 Tables, 12 Figures

Description

This Upstream Oil and Gas Insight report highlights the key issues surrounding this topic, and draws out the key implications for those involved.

This report helps participants, suppliers and advisors understand trends, risks and issues within the upstream oil and gas industry. It gives you an expert point of view to support informed decision making.

Wood Mackenzie's 500 dedicated analysts are located in the markets they cover. They produce forward-looking analysis at both country and asset level across the globe, backed by our robust proprietary database of trusted research.

Proprietary data means a superior level of analysis that is simply not available anywhere else. Wood Mackenzie is the recognised gold standard in upstream commercial data and analysis.

  • Contango Futures Market – The economic incentive to hold excess inventory
  • A widely used risk management tool
  • Contango and Cost of Storage (COS)
  • 2012 Ethane Regime Change
    • Ethane Supply Surge
  • WTI - Recent transition from backward to contango
    • WTI January 2015 projection based on recent trends and correlations
  • Summary

In this report there are 12 tables or charts, including:

  • Contango Futures Market – The economic incentive to hold excess inventory
  • A widely used risk management tool
  • Contango and Cost of Storage (COS)
    • Example of Contango Storage Price Parities
  • 2012 Ethane Regime Change
    • Contango - Futures Price and the 'Bid for Storage': Image 4
    • Contango - Futures Price and the 'Bid for Storage': Image 5
    • Contango - Futures Price and the 'Bid for Storage': Image 6
  • WTI - Recent transition from backward to contango
    • WTI September 2014 to December 2014 M1-M4 Futures Shape
    • WTI - October Inventory Builds Pushed Curve into Contango
    • Strong Relationship Between WTI Price and Future's Shape
    • WTI Price
    • Contango - Futures Price and the 'Bid for Storage': Image 11
    • Contango - Futures Price and the 'Bid for Storage': Image 12
  • Summary
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