This page has been archived and commenting is disabled.
April WTI Crude Futures Plunge To $46 Handle As Contango Soars
Front-month crude oil futures just plunged to new 6-week lows and a $46 handle. The April-May (J-K) spread has soared... no immediate catalyst for this move so we suspect it is Oil ETF and futures-roll-driven flow.
WTI hit 6-week lows...
And contango is soaring...
Charts: Bloomberg
- 13971 reads
- Printer-friendly version
- Send to friend
- advertisements -




Oil to $200!!
Lots of broke ass bulls, serves them right.
Didn't you hear, low oil prices mean good for the eCONomy and people will have more money to buy shit they don't need.
Thanks for the buy signal Tyler good for 1% so far
Did it make up for your 8% loss? Oh, right, you weren't long until oil hit $46.90, you nailed the bottom perfectly. Bulls really butt hurt right now. 30 mins of objective research would've prevented your losses.
I love that word "contango". Somehow I can envision a bunch of oil ministers dancing around but instead of flowers in their mouths, they have guns in their mouths.
The monkeys are throwing darts and making guesses. At this point nobody really know's what's going to happen but it's great fun guessing and ignore that iceberg off the port bow....
It's fun to watch but not be directly involved, in my shorts.
^Peckerwood1 knows!^
Trying to roll futures in the market will do that to ya. Expect it to be bad for that reason for the next several days.
War is coming. ALL HAIL CHUMBA
$33/barrel and we'll be able to wage 3 wars (Russia, Iran, Syria) for the price of one $100 war.
Call it a "blowout" sale.
Still paying $1.20/litre for diesel here...Bastards ($4.54/ gallon) (Canuckistan)
$3 of that is taxes?
wouldn't want to be hanging onto a couple million barrels waiting for it go to $100...would be getting nervous at $60....OUCH $46?
Read a silly article today how the oil companies are killing it....even though the oil they normal sell for $100 is at $46 they are killing it trading....with the price at $46. Anyone want to explain how when your selling price is normal $100....you replacing that profit by being a a trader at $46? Only in the finanical press could someone sell that BS....these puppies are hurting and by projections of productions they are going to hurting a lot more! BRING THE PAIN!!!
Too bad gasoline won't drop. Gas was almost cheaper than bottled water for a moment
Every price movement has a game-theory financial-engineering explanation while real supply and demand take a distant back seat. How's that for price discovery?
Contango: A situation in the oil pricing market that makes oil producers continue to pump like crazy and put it in storage because even though it's worth nothing today, it'll be worth a mint tomorrow. Promise.
According to eveyones favorite finance guru, J. Kramer these lower prices are hitting a home run for oil companies! It costs lesss to add additional rigs now, etc...
So he sez...Buy oil company stocks! It's just that simple...See?
Bring it on! $30 oil here we come!
If storage fills up, contango will get even bigger until the futures calendar spread equals the cost of storage and insurance in a tanker.
As the price comes down there will be higher supplier pumped volumes to make up for the losses...could get exponential volume upside...until the capacity caps out, then price will collapse double quick.
I call bullshit.
Yahoo had an article two hours ago saying contago fears had eased as there were only 5 supertankers holding their cargo for a higher price...
????
There's so much bullshit out there on storage, contago and rig counts. One jerk says one thing and another jerk says something totally different.
Clearly in real time no one knows shit and we'll find out who was on the money in about 6 months when we're looking back.
In the meantime bullshit still moves the market.
Last Contango in Paris, Texas
Bring back the big block engines with two carbs.
holly double pumpers...
Traders can't get away from those April WTI futures fast enough.
No one wants to actually take delivery of the stuff.
It will be a game of HOT POTATO until the expiry date next Friday.
I wouldn't want to be the one stuck with it.
ummm....... short WLL at will.