May Heating oil?

Discussion in 'Energy Futures' started by TraDaToR, Mar 25, 2013.

  1. TraDaToR

    TraDaToR

    May-Jun @ 60 and Jun-Jul @ -6???

    Take a look at the curve...Really weird. Somebody knows what's happening?

    PS: I know about the change in contract caracteristics between april and may. It's not what I am talking about...
     
  2. what its backwards?
     
  3. TraDaToR

    TraDaToR

    The curve is just abruptly moving from inverted to contango in the summer. It's normal for heating oïl prices to decrease in spring and then flatten during summer but here it's just too much IMO. Historically there is nothing wrong with value of the spreads, it's just the shape of the curve...If somebody can post it, I can't...

    Whatever, I entered Short May/Jun/Jul fut butterfly @ 62...
     
  4. TraDaToR

    TraDaToR

    By the way, I don't understand prices in fall too. Prices are supposed to get stronger in fall, independently from the general shape of the curve... flat in inverted market and strongly upward in contango...( I really need to learn the lingo.:p)
     
  5. TraDaToR

    TraDaToR

    Looks like I should have waited more...LOL
     
  6. Do any of you trade rbob or heat outrights? I traded crude for a while but recently started looking into the refined markets. They seem to trend really good. Just curious if anybody is trading these markets, I never really ever see anybody talking about them.
     
  7. TraDaToR

    TraDaToR

    I don't trade energy outrights.

    Out @ 102 for this spread. Epic fail.
     
  8. TraDaToR

    TraDaToR

    The curve looks more normal in the front months now( I should have just tried long Jun/ Short jul instead of the butterfly ), but I still don't understand this summer/fall...Compare it to further years...

    [​IMG]
     
  9. the future is at a discount.. do you know much about the proportions of time that the curve is backwards? or anything about that?
     
  10. TraDaToR

    TraDaToR

    I am not talking about that. I am talking about the fact that the curve is flatter during summer when normally it should be in the end of fall.
     
    #10     Apr 3, 2013