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With all due respect, you're jumbling a bunch of parameters w.r.t. contango, and its implications. Contango structure can exceed cost of carry even if crude oi
by caminante 12y ago
With all due respect, you're jumbling a bunch of parameters w.r.t. contango, and its implications. Contango structure can exceed cost of carry even if crude oil prices stay flat. There are lots of dynamics, which you allude to.
- URSpider94 12y agoFully agree -- it's more complicated than that, more than can be explained in a HN comment. I think you agree with my main point, which is that buying an oil ETF (or usually actually an ETN) doesn't mean your money will track the spot price of crude.