Dec 2012 bid 89.37 but Dec 2011 ask 89.29 ?

[greg25]

Quote from JPope:

Another decent idea could be to buy the Dec 14 or 15, and sell something early 2011. If the curve were to go back to contango, you could roll your nearby short every month, and maintain the long. Difficult to say when it's reached it's peak inverse too, the whole curve might go inverse the way it's looking...
One other idea that could be interesting and slower moving, is to sell the 16-17 or 17-18 at even?

So please anybody can explain the fundamentals behind this one week move, in the Dec 11- Dec 12 spread we passed from -1 to +1,86 in a couple of days.. and not just in this spread..

The WTI - Brent Spread (Jan) was ant -3 on Friday.. Is there anything out there what the market is discounting.. something we don`t see but they see..

Thanks

Greg

 

[benwm]

Quote from JPope:

Another decent idea could be to buy the Dec 14 or 15, and sell something early 2011. If the curve were to go back to contango, you could roll your nearby short every month, and maintain the long. Difficult to say when it's reached it's peak inverse too, the whole curve might go inverse the way it's looking...
One other idea that could be interesting and slower moving, is to sell the 16-17 or 17-18 at even?

JPope - not sure I follow you here. Please could you elaborate on your idea.
If the curve moved back to contango would you not just take off the spread for an easy profit? Or am I missing something?

What would you do if the spreads got more inverted?

 

[m22au]

http://www.bloomberg.com/news/2010-...ers-sell-near-90-a-barrel-energy-markets.html

"Contango Reverses as Oil Producers Sell Near $90 a Barrel: Energy Markets"

****

Today:

Dec 2011 91.14 bid
Dec 2012 90.04 offer
Dec 2013 89.20 offer

Dec 2014 89.25 offer
Dec 2015 89.55 offer
Dec 2016 90.05 offer