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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?


To: No Mo Mo who wrote (85420)2/13/2009 3:44:46 PM
From: Real Man  Respond to of 94695
 
Since there are a few oil arbs making money on this huge
contango by shorting futures and storing oil, guess who is
losing that premium? Those who are long futures. If oil trades
at 35 and July oil trades at 52, you are guaranteed to lose
$17 in futures vs "cash", all other things being equal. There
are storage costs involved, but I guess those are not
as substantial.