CLOL/WTI premium

Discussion in 'Energy Futures' started by swampy, Apr 27, 2010.

  1. swampy


    Does anyone have a historical % of where we are right now with brent being a $3.2 premium for June. Seems like it is really on the high end of the band. Something is going to give IMO.
  2. 1) It's kind of "wide" now.
    2) CL and Brent correlate "closely"", but not precisely.
    3) It may be "safer" to spread CL versus CL and Brent versus Brent. CL and Brent are capable of varying widely because of speculative trading pressure in CL, not fundamentals.
    4) There can be weird "caca" on the last day(s) of trade in the spot month.
    5) Trade/tread carefully there. :eek: :cool:

  3. adding to that ,brent-cl spread has very good correlation with cl calender spreads ..i use them a lot while trading ...can try it