Crude Erl....Cost of carry ?

Discussion in 'Energy Futures' started by J-Law, Oct 29, 2008.

  1. J-Law


    Is anyone aware of how to work out what the cost of carry, if there is one, should be for crude oil Cushing delivery, NYMEX contract ?
  2. rosy2


    futures price - spot price = cost of carry

    just use the futures pricing formula
  3. There's no definitive value. The cost of carry can be different for every physical player. Each may be able to borrow money more cheaply, have cheaper storage costs etc.

    I guess that's what makes the market - Spread wise anyway.
  4. Crude carry is nothing like the metals/grains markets, which are fairly static and mostly tied to int. rate. It is so dynamical and there are many different ways to play it if you are in the physical market.