Crude futures of 2010

Discussion in 'Commodity Futures' started by Galatia, Mar 7, 2008.

  1. Galatia


    Interestingly, they're trading at 96.68 (Dec 2010). So aren't they supposed to be higher? I mean everybody is talking about peak oil but crude futures of 2010 or even 2016 are trading below 100$. What the heck is that? Am i missing sth.?

    Could someone educate me about that?
  2. timbo


    Crude has an upper limit. Horses are available; and also that internet thingy.

  3. The market is clearly stating that "peak oil" is for fools.

    But then again, without these fools, who would we transfer the risk to?
  4. Sam321


    These days, it has a lot less to do with the underlining commodity, and a lot more to do with a world awashed in cash, reacting to an increasingly uncertain geopolitical climate, while having access to more global trading instruments than ever before.
  5. Galatia


    So i've done a little search on contango and backwardation and i found that;

    So that makes me thinks that;
    • Peak oil is really for idiots
    • Market nowadays is pricing an possible and sudden Iran war in one or two years which is a hardcode threat for oil flow from ME region.

    Am i right now?
  6. IMO the main reason oil is in backwardation is hedging of a great number of development projects.

    As for "these fools"... sounds like you have the whole situation figured out Areal. Guess you are going to make a fortune selling these contracts - oops you didn't try that already did you?