calling all Oil Traders

F

fearless9

Thank you for your attention Oil Traders.

Does anyone know the ratio of physical delivery to total contracts traded or where I might find it.

many thanks
regards
f9
 
?.....you could compare the final open interest to the peak open interest for the expiring contract. That ratio should be "small".
 
Not sure why you find this so difficult to look up . . .

http://www.nymex.com/rule_main.aspx?pg=86#505.14

505.14 Delivery
(A) Delivery shall be made F.O.B. at any pipeline or storage facility in Midland, Texas with pipeline access to TEPPCO Crude Pipeline L.P. storage. Delivery shall be made in accordance with all applicable Federal executive orders and all applicable Federal, State and local laws and regulations.

For the purposes of this Rule, the term F.O.B. shall mean a delivery in which the seller: (1) provides crude oil to the point of connection between seller's incoming and buyer's outgoing pipeline or storage facility which is free of all liens, encumbrances, unpaid taxes, fees and other charges; and (2) retains title to and bears the risk of loss for the product to the point of connection between the buyer's outgoing and the seller's incoming pipeline or storage facility.

(B) At buyer's option, such delivery shall be made by any of the following methods:

(1) By interfacility transfer ("pumpover") into a designated pipeline or storage facility with access to seller's incoming pipeline or storage facility. In the event of the buyer's election to take delivery by pumpover to TEPPCO from seller's delivery facility, seller bears the pumpover charges applicable from seller's delivery facility to TEPPCO;

(2) By in-line transfer, or by in-tank transfer of title to the buyer without physical movement of product, if the facility used by the seller allows such transfer.
 
cool. So If I buy 2 contracts of unleaded gasoline for delivery in aug. I could bring my pickup pull a tank and filler up. So I can take advantage of backwardation and save money on my gasoline over todays spot price at the gas station. plus save money by not paying the overhead (franchise fees etc...) and declare transportation expenses on my taxes?
 
Quote from prc117f:

cool. So If I buy 2 contracts of unleaded gasoline for delivery in aug. I could bring my pickup pull a tank and filler up. So I can take advantage of backwardation and save money on my gasoline over todays spot price at the gas station. plus save money by not paying the overhead (franchise fees etc...) and declare transportation expenses on my taxes?
More...



The contract trades in units of 1,000 barrels, and the delivery point is Cushing, Oklahoma, which is also accessible to the international spot markets via pipelines. The contract provides for delivery of several grades of domestic and internationally traded foreign crudes, and serves the diverse needs of the physical market.

http://www.nymex.com/lsco_pre_agree.aspx
 
Okay dumb idea. Sounds good in theory but 1000 barrel contract. I have no space for all those barrels. Plus It might raise some eyebrows in the neighborhood.
 
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