Dec 2012 bid 89.37 but Dec 2011 ask 89.29 ?

greg25 · Dec 6, 2010

Quote from JPope:

Another decent idea could be to buy the Dec 14 or 15, and sell something early 2011. If the curve were to go back to contango, you could roll your nearby short every month, and maintain the long. Difficult to say when it's reached it's peak inverse too, the whole curve might go inverse the way it's looking...
One other idea that could be interesting and slower moving, is to sell the 16-17 or 17-18 at even?
More...

So please anybody can explain the fundamentals behind this one week move, in the Dec 11- Dec 12 spread we passed from -1 to +1,86 in a couple of days.. and not just in this spread..

The WTI - Brent Spread (Jan) was ant -3 on Friday.. Is there anything out there what the market is discounting.. something we don`t see but they see..

Thanks

Greg

benwm · Dec 6, 2010

Quote from JPope:

Another decent idea could be to buy the Dec 14 or 15, and sell something early 2011. If the curve were to go back to contango, you could roll your nearby short every month, and maintain the long. Difficult to say when it's reached it's peak inverse too, the whole curve might go inverse the way it's looking...
One other idea that could be interesting and slower moving, is to sell the 16-17 or 17-18 at even?
More...

JPope - not sure I follow you here. Please could you elaborate on your idea.
If the curve moved back to contango would you not just take off the spread for an easy profit? Or am I missing something?

What would you do if the spreads got more inverted?

m22au · Dec 13, 2010

http://www.bloomberg.com/news/2010-...ers-sell-near-90-a-barrel-energy-markets.html

"Contango Reverses as Oil Producers Sell Near $90 a Barrel: Energy Markets"

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Dec 2012 bid 89.37 but Dec 2011 ask 89.29 ?

greg25

benwm

m22au