Home › Forums › Refining Community › Refinery News › Update2 – (BN) Speculators Morgan Stanley/Citigroup Seek Supertanker store Crude › RE: Update3 – (BN) Oil Traders/Speculators Miss Boat as Contango Shirnks
No worries “mates” – look like speculators missed boat on contango that is sinking!
And I am glad to see that door closing, but since contracts closed 1/20 on cheap current / higher priced futures, this was expected. I hope Freight boys did their usual indexing to market for demurage rates so these guys get fried burned on some margins as futures market continue sink as well. (I wasnt able to get chart they mention but one lead journalist @ Bloomberg sent me his spread chart that showed the delta dropping from ~$6-8/Bbl spread in Dec08 down to todays less ~$2/Bbl for Jan09 so far.)
Really ticks me off that Citigroup is part of this speculation ….. who got bailout money to help real business folks like the loans to LyondellBasel and wont extend a revolver type credit agreement…..but instead go gamble/speculate like this in area they have no business being in. Just another example of bad oversight & why unsupervised bailout funds are a joke/bad investment.