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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: neolib who wrote (176688)1/12/2009 10:19:15 PM
From: The ReaperRespond to of 306849
 
The third explanation is that the oil producers think the contango is an illusion and that those buying oil "cheap" now to sell for more later will in fact not get a higher price in the future.

Neo, if they sell contracts for delivery in the future months, they are locking in the prices we see right now for future delivery. They will get their higher price as long as they don't wait and try to play the market.


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