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by Jim Colburn Leave a Comment
The Economist discusses oil in storage here… I focused on Hillary Stevenson’s comment of the average cost to store a barrel:
“Hillary Stevenson of Genscape notes that the storage costs in tanks in Cushing are about 41 cents per barrel of oil per month, compared with a one-month contango of about 65 cents.”
The most active calendar spread option is usually the -$.50 put which happens to be a popular strike for hedging storage assets….
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