Contango is back

ogarbitrage said:
purchase several million bbl of LATAM crude on a WTI basis, purchase several million bbl of Mideast crude on Dubai basis, buy several West African cargoes priced against Brent, blend it all together and parcel out as a premiums to forward Brent or Dubai/Oman.
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That was my idea for my next trade.......
 
Question regarding Brent futures , from my understanding, this contract can have either cash/physical settlement. I was wondering how much of this is actually physical. Doesn't seem to be listed in the report section on ICE exchange...... Is there information available on this, or any idea on the kind of volume that is actually delivered on these contracts (If any at all)?
 
You can check the open interest at expiration of the contract to see how much is getting delivered. BFOE is delivered in increments of 600k bbl.

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I get how I could check that for a contract that is purely physical delivery (ie CL), but for a contract like Brent how can you tell if the contract was settled by Cash or Physical?

If I have a position in Brent going into expiration, this will be reflected in the Open interest, right? But if I choose to settle this via Cash, theres no physical delivery involved here. I was thinking that just by looking at OI, I wouldn't know what was being settled via Cash or Physical
 
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I am not sure if there is a way to see physical/cash settlement numbers. I would ballpark by dividing the ending OI by 600 and always rounding down. You can expect the cargoes delivered to be around this number.

However, outside of comparing the production rates to the expiration OI, I don't know of a definitive way to check the cash/phys ratio.
 
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