Whether you invest in ETFs or futures contracts, you can't afford to ignore the risk this phenomenon poses. Investors run into new concepts all the time, and to be successful with your investments, ...
The oil market continues to send mixed signals, with a pending U.S.-China trade deal and potential production cut extension--or deepening--by OPEC counterbalanced by rising crude inventories and an ...
Contango makes it profitable for crude traders to store large volumes of crude oil through "cash and carry" strategies which are no longer possible when the market is in backwardation. Many observers ...
As energy prices rebound, commodity traders have jumped on oil exchange traded funds to ride the rally from 13-year lows. However, long-term investors should understand that these ETFs track the ...
The specter of contango must be acknowledged when it comes to commodities ETFs, particularly those that are based on futures contracts, not actual physical holdings of an underlying commodity. And ...
Notice though that it took until November 2014 before the spot return started outperforming the excess return after the prior peak in June 2014. That is since the cycle of backwardation and contango ...
OPEC has cut back to reduce OECD stocks. It expects higher prices and futures market backwardation as a result. The futures market is signaling it's going to take more than a year. It could shock the ...
Investors run into new concepts all the time, and to be successful with your investments, you have to understand all the factors that can affect your portfolio and its holdings. Those who invest ...
LONDON (Reuters) - "Backwardation is the solution" to OPEC's problem of how to raise output and revenues without sparking another shale boom, according to the influential oil research team at Goldman ...