January contract keeps falling but the oil is up longer the curve. I read something really interesting today about the Government selling front month crude oil and buying down the curve for late 2009 delivery.
Arguably the Government is trying to stimulate the economy trying to drive down oil prices. With the Quantitative Easing policies still fresh in my mind anything is possible these days. One of these days the Fed ranks first as the trader in the bond, stocks, forex and oil pits. Maybe they should of bought Lehman Brothers just to clear their trades and do their back-office.
We are living in crazy times and I really believe in this intervencionism theory in Oil. The Contango is huge. The February is trading 8 dollars higher then front month. That`s over 20%. I have never seen such a mismatch. Is Paulson selling Oil?
Subscribe to:
Post Comments (Atom)
0 comments:
Post a Comment