Oil & Gas Price Economics Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Oil & Gas Price Economics

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Arktic who wrote (90)	4/24/1999 10:21:00 PM
From: ferrit	Read Replies (2) of 350

Paul: As you observe Crude Oil futures are in very marked Backwardation. This normally occurs only when there is an acute shortage of the commodity for spot delivery, eg when Russia is holding up supplies of palladium. Since there is no shortage of crude oil at present,nearly all storage tanks are full, the only explanation I can offer is that the market expects OPEC to abide by the quotas for a few months, but by next summer they will again be over producing thus driving the price down. I would be very interested in the views of people with knowledge of the futures markets, because I too am puzzled.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next