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Connacher is a growing exploration, development and production company with a focus on producing bitumen and expanding its in-situ oil sands projects located near Fort McMurray, Alberta

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Message: Re: WTI vs BRENT

Dec 18, 2008 09:33AM

Dec 18, 2008 10:00AM
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Dec 18, 2008 10:08AM
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Dec 18, 2008 10:27AM

Dec 18, 2008 11:20AM

Dec 19, 2008 04:25AM

Dondon,

As I once mentioned before on here if you can you should buy WTI and sell Brent. They can not and will not maintain this upside down differential. As soon as they return to their correct relationship with WTI one or two bucks above Brent, you are in the money. You don't care if oil price goes up or down, it's easy money. The only thing you need to watch out for are the margin calls if the difference goes a lot further (highly unlikely at the current $10). In this case you need to maintain quite a large surplus in your account to be safe. Interest payments are negligable in the whole scheme of things so no need to worry about those.

OR if you have a rather large tank in your back garden you can buy Jan and sell Feb futures for an $8 gain.

Den






Dec 21, 2008 10:02AM

Dec 22, 2008 10:25AM
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