Cool Crude Charts

Crude Oil has been dominating discussion around the managed futures world lately, and let’s face it, there’s good reason for the all the jabber. Last week, we couldn’t help but point out that the so called, “Black Gold,” was experiencing the highest level of backwardation (reverse Contango, if you will) in 15 years. For definitions, see here. We pointed that for the managed futures industry, this anomaly is causing difficulties for many of the spread trading CTAs we follow. However, they point out it this backwardation won’t last much longer, but as we can see this backwardation holds strong (at least for another week.)

So it’s no surprise Newedge chose such a prominent topic for their latest piece. But their content reaches far beyond the observation of this so called “historical” occurrence. Topics include everything from the CME fine tuning the nickel content allowed in deliverable crude to Egypt’s foreign reserves, to the Jones Act which requires any goods moving from a US port to another US port to be done on a US flagged vessel.

What’s even better for Crude Oil/Futures/Data junkies like us?  The charts:

Chart 1 WTI Spot

Source: Bloomberg LP

(Disclaimer: Past performance is not necessarily indicative to future results.)

Chart 2 US Land Locked

Chart courtesy: EIA, Bloomberg LP, Canadian Association of Petroleum Producers

Chart 3 Pipeline to gulf

Chart Courtesy: RBN Energy, Wikipedia

Chart 4 Keystone Pipeline

Chart Courtesy: RBN Energy, Wikipedia










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Forex trading, commodity trading, managed futures, and other alternative investments are complex and carry a risk of substantial losses. As such, they are not suitable for all investors.

The entries on this blog are intended to further subscribers understanding, education, and – at times- enjoyment of the world of alternative investments through managed futures, trading systems, and managed forex, and is not intended as investment advice, or an offer or solicitation for the purchase or sale of any financial instrument. Unless distinctly noted otherwise, the data and graphs included herein are intended to be mere examples and exhibits of the topic discussed, are for educational and illustrative purposes only, and do not represent trading in actual accounts. Opinions expressed are that of the author.

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The mention of general asset class performance (i.e. managed futures did well, stocks were down, bonds were up) is based on Attain’s direct experience in those asset classes, estimates of performance of dozens of CTAs followed by Attain, and averaging of various indices designed to track said asset classes.

It should be noted that past market performance is not indicative of future market movement.No market data or other information is warranted by Attain Capital Management as to completeness or accuracy, express or implied, and is subject to change without notice.

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Past Performance is Not Necessarily Indicative of Future Results. The regulations of the CFTC require that prospective clients of a managed futures program (CTA) receive a disclosure document when they are solicited to enter into an agreement whereby the CTA will direct or guide the client’s commodity interest trading and that certain risk factors be highlighted. The disclosure document contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA.