With CL 5 bucks up today (June 5) there seems to be an absence of comment. Did all those talking short positions get their peckers caught in the mincer today? If so, that underlines the point that the best play, the richest play is intraday. The session's gyrations today produced 32 micro gyrational 'legs' of minimum 15 points (bar close to bar close) and 12 macro 'legs' of minimum 45 points (ie cents). The mean average of those 12 'legs' was 103 points per 'leg' - between 10am and 2.30pm thats more than 1200 points on offer!
Backwardization is normal in oil futures market and has been forever. In fact, only recently did we actually see futures market in contago which if anything points to potential for much higher oil prices. Production occurs only if discounted futures are below spot prices. If futures move to contango, producers have incentive to stop producing, thereby increasing spot, thereby increasing production, thereby moving futures back to backwardization.
Right, backwardation is more the normal but the market was also in contango for somewhat more than two years, 2005-07, which really helped drive the oil storage trade: buy, place in storage, sell futures for higher price, close existing contracts before delivery date, sell new ones; the physical oil never moves. A backwardated forward curve, well, interferes with this.
All those shorting have had their peckers chewed up in the mincer - this current lightning bull recovery mincer. But if you simply play each day, you need only read the market with an accurate methodology. You utilize the gyrations, buying the upmoves and selling the downmoves. You are calm and focussed.
this would be a good time for Bush-II to show his leadership.... since it seems anyone complaining about the economic impact and destruction of life as most Americans know it, due to the unfettered rise in the price of oil, and how it is causing people on the ground to rethink everything about their ways of life, whether being a soccer mom and taking a trip to the grocery all the way to whether or not the police / fire trucks will roll on emergencies.... since anyone complaining of pointing out the negetive deliterious effects is being smeared with some socialist, communist name calling by those in support of these conditions, then, a simple solution would be for Geo Bush II to show his commanding, authoritative leadership and get out in front of this "thing" hey, after all, isn't he an Oil Man? hey, after all, isn't this what these last 8 years were all about anyway? hey, after all, with stocks going up, oil going up, with stocks going down, oil going up, hey, after all, isn't this what the Texas Delegation has wanted all along?