To: TigerLikesRooster
they must think oil will go up significantly.
4 posted on
01/15/2009 9:49:44 PM PST by
ken21
(people die and you never hear from them again.)
To: ken21
Iran and Russia.
5 posted on
01/15/2009 9:50:52 PM PST by
TigerLikesRooster
(kim jong-il, chia head, ppogri, In Grim Reaper we trust)
To: ken21
they must think oil will go up significantly........
And if it doesn’t you and me get to bail them out
21 posted on
01/15/2009 11:18:10 PM PST by
dennisw
(On the thirty first floor a gold plated door won't keep out the Lord's burning rage ---FBB)
To: ken21
"they must think oil will go up significantly."Expecting an Isreaeli raid on Iran?
22 posted on
01/15/2009 11:21:10 PM PST by
blam
To: ken21
they must think oil will go up significantly.
Nope. The spread between the cash price of oil and the futures is big enough that this makes sense. It's low risk money if you can round up enough cash to do it and know what you're doing (I don't qualify on either count).
Buy oil for Feb delivery at $35-36 a barrel, simultaneously sell oil for Mar delivery at a little over $42 a barrel. But you need to store it somewhere for the month. At current rates it costs a little over $2 million a month to charter a VLCC. Those hold about 2 million barrels of oil.
Buy 2 million barrels, sell it for $6 a barrel more than you paid. Pay another $2 million to charter the tanker, throw in whatever other expenses are involved and the trader makes a very nice profit on the deal.
47 posted on
01/16/2009 4:28:38 PM PST by
javachip
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