• 5 minutes Oil prices forecast
  • 8 minutes Nuclear Power Can Be Green – But At A Price
  • 11 minutes Projection Of Experts: Oil Prices Expected To Stay Anchored Around $65-70 Through 2023
  • 16 minutes Europe Slipping into Recession?
  • 3 hours *Happy Dance* ... U.S. Shale Oil Slowdown
  • 2 days U.S. Treasury Secretary Mnuchin Weighs Lifting Tariffs On China
  • 20 hours Germany: Russia Can Save INF If It Stops Violating The Treaty
  • 2 hours Socialists want to exorcise the O&G demon by 2030
  • 1 day Connection Between Climate Rules And German's No-Limit Autobahns? Strange, But It Exists
  • 19 hours Maritime Act of 2020 and pending carbon tax effects
  • 1 day Chevron to Boost Spend on Quick-Return Projects
  • 1 day Conspiracy - Theory versus Reality
  • 2 days UK, Stay in EU, Says Tusk
  • 2 days What will Saudi Arabia say? Booming Qatar-Turkey Trade To Hit $2 bn For 2018
  • 2 days Regular Gas dropped to $2.21 per gallon today
  • 2 days German Carmakers Warning: Hard Brexit Would Be "Fatal"

Could this be the Trade of the Decade?

This could be the most important column I write all year – and I wanted to write it when the ‘free view’ period was done and only those who had paid their hard earned money had access.  I’m about to give you what I think is the best investment I see right now, one that strikes me as having the best risk/reward and available to any subscriber, given just a little work.  

You need to be long contracts in the far back of the crude oil curve, with a holding period of at least 18 months.

Yes, it’s a long-term investment and yes, it has margin responsibilities that other equities and ETF’s don’t.  But it also takes advantage of a consistent and important mispricing I see in the oil market that delivers a most tasty risk/reward opportunity.

First, buying contracts in the futures market a year and a half or more from delivery takes fantastic advantage of the current shape of the crude curve – a steep backwardation.  That means that the pricing of crude contracts as you move further out into the future cost less and less.  How much less?  Well, with prompt crude for October of 2013 trading at $108 or so, prices for March of 2015 are pricing at slightly under $90 and for December of 2015 at $87.   That’s a $20 discount for crude prices less than two years from now.  

I consider that $20 to be a true buffer that you can rely upon, helping to greatly increase the…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin



Oilprice - The No. 1 Source for Oil & Energy News