Monday, December 12, 2016

Tough for Crude Oil to rally much further

I think $52 crude oil plus a $4 contango gives you $56 for a one year forward. It is going to be tough to push WTI over $52. I said that more than two months ago, I said it a month ago and I will said it today again. As long as there is a contango, as long as there is a carry charge for the 1 year forward crude oil, that's imminently profitable.