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How is this not a good time to buy oil. Assuming a 5+ year time horizon.
by rco8786 7y ago
How is this not a good time to buy oil. Assuming a 5+ year time horizon.
- lumost 7y agoIt's a physical asset, with strict environmentally regulated storage requirements. Holding it speculatively for 5+ years requires that the speculation will pay in excess of the storage fees compounded at a reasonable risk adjusted rate of return for the 5 year duration. This is a great deal if you happen to own cheap oil storage, I wouldn't be surprised if the main buyers of these contracts are the storage companies.