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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