We are an oil storage company aiming to renew, develop and increase efficiencies within the oil storage market. Our tools consist of comprehensive knowledge of the industry and a wide international contact network. We are pleased to announce that Pontus Hallbäck joins the Contango Storage team.
Pontus has more than years experience from the oil storage industry where he has been part of the management team of Scandinavian Tank Storage. Pontus will be responsible for running Contango Brokerage, which focuses on . A: Traders with access to physical oil and storage can make substantial profits in a contango market.
Other traders may seek to profit on a storage shortage by placing a spread trade betting on the contango structure of the market to increase. Contango means that the spot price of oil is lower than future contracts for oil. The oil- storage trade, also referred to as contango , a market strategy in which large, often vertically-integrated oil companies purchase oil for immediate delivery and storage —when the price of oil is low— and hold it in storage until the price of oil increases. Investors bet on the future of oil prices through a financial . Join LinkedIn today for free. See who you know at Contango Storage AB, leverage your professional network, and get hired.
Major oil benchmarks have seen some pretty wild swings so far into the current trading year. Medium term market forecasts remain broadly bearish. That has triggered a markedly evident oil storage rush as traders look to play contango , i.
Find executives and the latest company news. Status, offentliga värden, adress mm för Contango Storage Aktiebolag. What causes a contango ? The vast majority of time it is simply a situation where supply is greater than demand.
So, to the question at han how do traders execute a trade(s) to take advantage of a contango ? The little city of 9people is also home to tanks capacious enough to hold 70. There, oil stocks have doubled since October to 41. US commercial inventories. In a “few months it will be full”, Harry Pefanis, president and . There was a time when all you needed to balance oversupply in the oil market was the ability, and the will, to store oil when no-one else wanted to.
Current contango makes a storage strategy potentially profitable. Chinese government is stashing oil in old salt mines to build their strategic petroleum reserv. In strong contango markets, the profits generated in the storage grain trade were risk-free. The role of inventory in commodity markets. The analysis of contango and backwardation.
Empirical tests of the storage theory. Critiques of the theory . Basically the market tries to lock in the value of storage by buying summer and fall natural gas and selling winter natural gas forward. The prices of summer and fall futures contracts typically trade at a discount to the winter contracts ( contango ) thus providing a return for storing natural gas.
An owner of a storage facility can. While that is less than in previous months, traders said that volumes in storage could easily pick up. He declined to be identified as he was . At times, the prompt price was .