ES Journal - 2019/2020

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Hoe does the CL contract work? June crude is trading almost $7 more than May's. If you buy June does that mean if May stays the same price till it expires June crude will erode $7 of premium?Thats a 25% premium to go out an extra month.
 
Picaso said:
When the rumours about a cut started, oil was trading at 20. Then it popped a few dollars. Then the rumours started talking about 20 million cut, it popped to 28. Now we have the news and it's 10 million, so imho it should be rangy for a while. I don't see a homerun there either long or short.
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Right, buy the rumor, sell the news. But aren't they looking for any kind of good news to kick the market up?
 
CL has painted a high of 24.74 today. PA has been pretty much straight down to the mid-22's level. It's gonna take a lot more than a $10M BBL cut to keep oil inventories in check. Once inventories are full, look out below.
 
Relentless said:
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Yep, it's coiling...

hafez50 said:
Hoe does the CL contract work? June crude is trading almost $7 more than May's. If you buy June does that mean if May stays the same price till it expires June crude will erode $7 of premium?Thats a 25% premium to go out an extra month.
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7 seems like a lot... the spread between June and July is half that
 
schizo said:
Right, buy the rumor, sell the news. But aren't they looking for any kind of good news to kick the market up?
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Then they should give B1S2 a call :D

The only good news regarding oil that I see is that China is buying, but I'm sure that's already priced in.
 
hafez50 said:
Hoe does the CL contract work? June crude is trading almost $7 more than May's. If you buy June does that mean if May stays the same price till it expires June crude will erode $7 of premium?Thats a 25% premium to go out an extra month.
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This means if you have space to store crude taking delivery in May and selling June you can make $7 - storage charges - cost of capital without any risk.

It also means we have run out of space to store it
 
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