Monday, August 17, 2009

Oil Futures; "17,00o put contracts come into the money at $65 per barrel"

They expire today. That's 17 million barrels. From FT Alphaville:

A crude correction

Brent crude oil was trading at $70.02 on Monday morning; Nymex WTI crude, meanwhile, was trading at $66.08.

That is almost a $4 per barrel spread between the two contracts — its widest since mid-February when storage at Cushing, Oklahoma, the physical delivery point for Nymex traded WTI crude, peaked and caused numerous analysts to question the viability of the Nymex contract.

WTI-Brent - FT

The downward correction in WTI to $66 per barrel from over $70 per barrel levels this month, meanwhile, came just as macroeconomic news was actually looking a bit more bullish....MORE