Beware: this can get nasty in quick succession. We might even see carnage on the street tomorrow. Roll out the red carpet!
From earlier before I left. One more article. http://www.marketwatch.com/story/crude-oil-futures-lower-amid-egyptian-calm-2011-02-14
so what it takes to sell April oil now and buy March month and take phisical delivery of march month and store it in a ship and deliver it at a month later. seriously at $4500 per contract , if you have a 10k barrels ship rented it and after all the cost of say $1 for this one month it is a profit of $3500 x 10k = $35 millions seriously what is the math here. why Goldman , Morgan stanly and all other big hedge funds can not do this ??
This is largely due to rollover contango exacerbated by Egyptian unrest. Producers are resorting to storing oil in tankers to offset any potential problems.
Actually I had heard that GS did buy a number of oil tankers which really made me shake my head. I think they used our bailout money to buy tankers. Sheeeesh! Life on Wall Street. (BTW, I'm not saying this as a joke to be funny. I really did hear this.) http://en.wikipedia.org/wiki/Oil-storage_trade http://www.zerohedge.com/article/oil-market-outlook-when-contango-trade-unwinds