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quadrature

(2,049 posts)

5. there is a large 'carrying cost' to oil futures

Reply to IDemo (Reply #4)

Mon Dec 8, 2014, 07:04 PM

Dec 2014

what you are buying is...
today's price, plus storage cost.

storage is not cheap
(or not usually cheap)

you have to pay to rent** storage facilities
(** that price gets built into the price of a call)
..........
with that said,
you might want to look at
a 'passive long' commodity fund

Click here to purchase valentine hearts!

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Highlight:

Oil prices tumble further after Morgan Stanley cuts forecast [View all] IDemo Dec 2014 OP

Enjoy it while you can. louis-t Dec 2014 #1

These low gas/oil prices create a massive transfer of wealth from BP/Saudi Arabia to the average okaawhatever Dec 2014 #2

Damn...a real free market at work. dixiegrrrrl Dec 2014 #3

Are oil futures something to consider IDemo Dec 2014 #4

there is a large 'carrying cost' to oil futures quadrature Dec 2014 #5