Bad Economic News in Asia sends Oil Lower

Sunday, October 11, 2009

Following Monday's report that the japanese economy contracted by the most since 1973, a Reuters poll showed confidence among japanese manufacturers is near record lows and service sector sentiment fell to its worst levels ever.

Contango diminished Friday with the huge rally on ths front month future contract. If contango disappears, long term investors may begin to consider taking big long oil positions. But with this type of contango all long positions can`t be held for long because the contango, rolling yield over 15% per month will just kill you. Good for the conviction shorts, though.

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