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Notations on the jpg are mine. Living in interesting times! If we had storage facilities like gold, buy 100,000 barrels at $1 and wait for it to 100x - which it will eventually (I hope anyway).
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,049 since Dec 2013
Thanks Given: 4,388
Thanks Received: 10,207
Oil storage is limited and as such storage prices have gone through the roof. Even tanker rates are exploding as people plan to use them as floating storage. We're managing right now but really wonder what happens in a few weeks time when storage is full and tankers are all locked up. Where will this crude all go?
As of Thursday, 100% of VLCC and ULCC oil tankers are out to sea loaded. They can't put it back in the ground and land storage is limited. Plus, no one's buying, including the Chinese who usually like to have their reserves filled. The Saudi/Russia oil war continues without abatement.
Every day this week CL filled in the LVNs. Not yesterday. Eventually, someone is going to buy those lows and fill it in. May be a while however. If it goes into the teens, jobs lost will be catastrophic to the industry.
Consolidated TPO March 8-27. Yesterday's TPO chart.
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,049 since Dec 2013
Thanks Given: 4,388
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May settled 21.51 and June 3.64 higher at 25.15. July is a further 2.98 higher at 28.13. Right now we have the problem of both lower demand and oversupply. While I concede that demand may improve gradually over the next few months, we will still be dealing with oversupply and will have the added issue that storage everywhere will be full. Where are barrels going to go? Why is July 7.50 higher than May? I really don't trade much flat price but am seriously considering shorting Q3 prices at $30. I think there's a real possibility they roll down the curve to the low 20s as they become prompt.
Producers are struggling to find storage as demand takes a dive. Three to four billion gallons of U.S. production could come offline in the next 30 days, according to Green Plains.
“At some point, your tanks are full and your railcars are full and you start filling up the coffee cups in the cafeteria,” said Monte Shaw, executive director of the Iowa Renewable Fuels Association. “Then, the plant shuts down.”
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,049 since Dec 2013
Thanks Given: 4,388
Thanks Received: 10,207
Here's something to start thinking about ...
CME :- Changes to Price and Strike Price Eligibility Flags for Certain Energy Products
This Sunday, April 5 (trade date Monday, April 6), as an operational step toward potentially supporting negative pricing and strikes, the MDP 3 Security Definition (tag 35-MsgType=d) for these NYMEX Energy outright futures and options on CME Globex will be flagged as eligible to trade at negative prices. The options on futures will also be flagged as negative strike price eligible. Trading at negative prices for these outright markets will not be supported at this time. Negative strike prices will not be listed.
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,049 since Dec 2013
Thanks Given: 4,388
Thanks Received: 10,207
CRUDE OIL MARGINS UP 5.5% EFFECTIVE TUESDAY 7TH MARCH
Maintenance margin as follows (Initial Margins, ie non-member rates will be 110% of these)
Tier 1 (May) increasing from 6350 to 6700, +350 or 5.5%
Tier 2 (Jun) increasing from 6200 to 6400, +200 or 3.2%
Tier 3 (Jul) increasing from 5800 to 5950, +150 or 2.5%
Others unchanged.
For Reference/Comparison
Tier 8 (Dec20) is 4700
Tier 20 (Dec21) is 3575
Wonder if with such Contango the USO roll will affect the front months? Couldn’t find if there is a set date for the roll though it says within 2 weeks of expiration
