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A contract to deliver oil in 2021 is known as a future [0], you can trade these on the market. The "problem" facing you is that the market also understands that
by gpm 7y ago
A contract to deliver oil in 2021 is known as a future [0], you can trade these on the market. The "problem" facing you is that the market also understands that the price of oil is going to go up, a barrel of WTI Light Sweet Crude Oil is $21.84 for delivery this May, but $35.53 for delivery next may [1].
[0] https://en.wikipedia.org/wiki/Futures_contract https://en.wikipedia.org/wiki/Futures_contract
[1] https://www.cmegroup.com/trading/energy/crude-oil/light-sweet-crude_quotes_globex.html?optionProductId=769&optionExpiration=769-K0 https://www.cmegroup.com/trading/energy/crude-oil/light-swee...
- RandomBacon 7y agoJust be sure not to let the future contract expire before selling it, otherwise you might end up with a barge full of coal being delivered to your investment firm: https://thedailywtf.com/articles/Special-Delivery https://thedailywtf.com/articles/Special-Delivery
- wyxuan 7y agoIt's called super contango. If you can find a way to store the oil, the market is rewarding you with this arbitrage, but it's getting difficult to find this much storage
- jacobush 7y agoHm, Sweden used to have huge strategic reserves, somewhere. Wonder if most if those are all destroyed or just empty.