an elephant named cushing
there's a pink elephant in my portfolio and he's dancing the cushing contango while banks crack the trainer's whip & opec acrobats tumble in the next ring.
i wonder when jumbo will get down from his circus stool. Meanwhile canadian trapeze artists are flying low & their energy may be looking good to buy this summer. Ambani of india's reliance energy says 100/barrel oil by end of this year.
" ... NEW YORK (MarketWatch) -- Oil producers, refiners and investors have put a record amount of crude oil into storage at a key delivery point as they try to profit from an unusual form of "super contango" that indicates the market expects prices to rise sharply by ... "
the foregoing was written last week, right.
no, wrong. It was written in january 2009, at a time when Cushing energy inventories had risen more than 40%. A similar situation prevails today. The cost of storing oil is markedly less than the difference between the present and the futures contracts.
will a similar upward market burst occur when today's super contango resolves itself, as did commence in spring 2009.
dang. And i was getting really good at google pacman.