CL Redux

so what it takes to sell April oil now and buy March month and take phisical delivery of march month and store it in a ship and deliver it at a month later.

seriously at $4500 per contract , if you have a 10k barrels ship rented it and after all the cost of say $1 for this one month it is a profit of
$3500 x 10k = $35 millions

seriously what is the math here.

why Goldman , Morgan stanly and all other big hedge funds can not do this ??


Quote from BCE:

Yeah that is something. Been a while since we've been down at these levels.
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Quote from InvestVision:

holy cow march/april spread $4.50 never heard of just for 1 month
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This is largely due to rollover contango exacerbated by Egyptian unrest. Producers are resorting to storing oil in tankers to offset any potential problems.
 
Quote from InvestVision:

so what it takes to sell April oil now and buy March month and take phisical delivery of march month and store it in a ship and deliver it at a month later.

seriously at $4500 per contract , if you have a 10k barrels ship rented it and after all the cost of say $1 for this one month it is a profit of
$3500 x 10k = $3.5 millions

seriously what is the math here.

why Goldman , Morgan stanly and all other big hedge funds can not do this ??
More...
Actually I had heard that GS did buy a number of oil tankers which really made me shake my head. I think they used our bailout money to buy tankers. Sheeeesh! Life on Wall Street.

(BTW, I'm not saying this as a joke to be funny. I really did hear this.)

http://en.wikipedia.org/wiki/Oil-storage_trade

http://www.zerohedge.com/article/oil-market-outlook-when-contango-trade-unwinds
 
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