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I think the semantics are confusing, but I don't believe Cottle is suggesting that position is a fence or collar. It's an underlying long coupled with a bearish fence. He is suggesting that, synthetically, the long underlying plus short call is a bull spread because it's equivalent to long two...

Very curious to see how liquidity in this one develops.

I highly recommend Pilipovic's Energy Risk. The interested reader would also benefit from Errera and Brown, Geman, Geman, and Fabozzi, Fuss, and Kaiser. Of these, I find Pilipovic and Geman to be the most worthwhile for energies specifically. For STIRs, I understand the bible is The Treasury...

When people refer to "spot WTI", more often than not they are talking about the front month WTI contract. Physical spot prices are subject to quality and delivery location.

I believe Soros got it right when he suggested that information and observers of that information are stuck in perpetual feedback loops. The oil and product fundamentals have an impact on perceptions of hedgers and speculators which transfers into price action via their responses to perceptions...

One of the greatest movies ever made.

In the same vein for macro, I read Foreign Policy pretty religiously.

Reuters, Platts, Drudge, and Google News Alerts. I have 400+ alerts set up for companies, key words, ports, people, etc. etc. etc. It's a constant flow of information.

I believe the spreads in the front are indicating on-land storage is nearing capacity and the spillover into water-based storage is beginning to hasten (see bolded in "Spot storage"). Spot storage Storage Industry Benefits From Oil Contango US gasoline market players grapple with wide...

Iraq offers Asian buyers largest discount on its oil since 2003 OPEC oil producers compete for Asian market share

The best oil traders in the business say this rout is not over

I am still in. 3200 shares and 80 calls.

Hope you got out before your arrogance got the best of you.

I use the term shocked because I would be surprised to see any rally not immediately sold by physical traders, banks, and producers based solely on the fundamental picture. The general sentiment among that crowd is decidedly bearish in the short (M1-M3) and medium term (M3-M9). I would expect...

Any rally is going to be heavily sold by unhedged producers and any short-term supply issue can be easily met by drawing down the record inventory. Like I sad, I would be shocked to see it, but it could happen. I'm in the camp that says we will see below $40 before above $60.

I would be shocked to see Brent or WTI above $60 by the end of Feb.

Singapore light distillate stocks rise to record high 14.7 mil barrels OPEC January Crude Output Rises on Gains From Iraq

Med Crude-Med Urals moves to rare premium to dated Brent

Apologize for lack of posting this week. On travel in the East so posting will be sporadic for several weeks. Not specifically Hall related, but I found this to be an interesting perspective about the backs. Gunvor has a sharp eye for these markets so I like to be in the same trade as them...

The plot thickens.