Recommandé
Contenu connexe
En vedette
En vedette (14)
REDx Oil Wars Talk
- 5. ...the picture has changed dramatically since then ~ -40%
- 11. Saudi Arabia $3 Oil Production Cost Curve Average Breakeven Prices
- 12. > -40% ?
- 13. ...so how does this affect me? • @ the pump? • @ the grocery store? • On my holidays? 57% Taxes & Duties 36% Crude Oil 4% Oil Company 3% Retailer
- 14. Hi Emeka, ur Nissan may b worth more than u think. Call 4 free appraisal+test drive. Gr8 used car range... So... do I... don’t I?
Notes de l'éditeur
- During the recent Great Recession brand new car import piled up in sea ports because demand for them had collapsed. In fact, it was reported that Toyota started renting container ships as they ran out of land space. Brent Crude price on 9 September 2008 was $98/bbl.
- 3. But cars weren’t the only things being stored on tankers. As oil prices fell from an all-time high of $145/bbl to under $40/bbl, traders started stashing crude on ships, waiting for prices to rebound. By January 2009 there were some 90 million barrels of crude in floating storage. 4. Known as contango, this market structure allows traders to lock-in profit by buying oil now and selling it forward for later delivery, as long as the costs of storage are low enough. In a rare split, crude is cheaper in the spot market than in the futures market, where bets are made on where prices will be in the months ahead. By buying physical stocks of oil and immediately selling futures, traders can lock in a profit. 5. A similar situation developed in the oil markets starting in July 2014, with spot prices lower than prices for future delivery. Brent Crude price on 9 September 2014 was also $98/bbl.
- So what is going on?
- 2009
- Oil Production Cost Curve
- Soaring output from the U.S. shale oil boom has depressed prices and is forcing other producers to discount their oil in a bid to hold on to market share. Storing crude has reemerged as a trading play due to a significant shift in the oil market in the last few months. As weak demand and strong supplies have weighed on prices for delivery in the near future, contracts for later delivery have risen to a premium.