Markets oil stocks

‘Better Odds At The Neighborhood Craps Game’

I suppose that's just as good a summary as any.

Oil continued to dominate headlines on Tuesday as S&P Dow Jones said it will pre-roll its WTI contracts to July, the latest evidence that the first-month will be personae non grata as long as everyone remains terrified of delivery in an environment where there's simply nowhere to store the stuff. "It’s not particularly unusual for the second month to be more liquid than the first as expiry approaches, but it’s less usual to completely skip a month as happened here", Bloomberg's Eddie van der Walt wrote Tuesday. There's a kind of self-fulfilling prophecy going on. If everyone expects everyone else to avoid the nearer contracts, they'll become increasingly less desirable. This could perpetuate the price action, making a re-run of negative prices in the near-term futures more likely. "S&P GSCI now too rolling from June to July", Nomura's Charlie McElligott sighed, in a Tuesday note, calling it "a race to the death versus USO and the negative feedback loop thereafter". Jitters around an imminent overflow at Cushing will keep this dynamic in play. US producers are now storing barrels in the Strategic Petroleum Reserve after inking leasing deals with the DOE. "This is a
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2 comments on “‘Better Odds At The Neighborhood Craps Game’

  1. Anonymous

    We aren’t able to Cushing the blow?

  2. The Fed meets the laws of Diminishing Returns……sort of reminds me of a 60’s era Shock Theater Monster Flick….exiting to the end !!!!

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