US Oil Overnight Charges

This is a discussion on US Oil Overnight Charges within the Spread Betting & CFDs forums, part of the Commercial category; Hi all, Ages since I posted here. Unsure, if this is the right forum, if not, please let me know ...

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Old Jul 6, 2018, 7:32am   #1
Joined Dec 2009
US Oil Overnight Charges

Hi all,

Ages since I posted here. Unsure, if this is the right forum, if not, please let me know where to post (Commodities?).

I am based in the UK and have been holding two short WTI/USOil positions - and since Jun 21, I noticed that the overnight holding interest-rate/swap has gone up from around £2/night to £17 last night. That does seem like a substantial increase. I have been in touch with the broker and after quite a bit of back and forth I still don't completely agree with what they are trying to convince me of, which is around the price of the futures contracts decreasing substantially.

So just wanted to confirm if something changed in the past 3 weeks please?

Thanks.
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Old Jul 11, 2018, 2:15pm   #2
Joined Nov 2014
Quote:
Originally Posted by quaid View Post
Hi all,

Ages since I posted here. Unsure, if this is the right forum, if not, please let me know where to post (Commodities?).

I am based in the UK and have been holding two short WTI/USOil positions - and since Jun 21, I noticed that the overnight holding interest-rate/swap has gone up from around £2/night to £17 last night. That does seem like a substantial increase. I have been in touch with the broker and after quite a bit of back and forth I still don't completely agree with what they are trying to convince me of, which is around the price of the futures contracts decreasing substantially.

So just wanted to confirm if something changed in the past 3 weeks please?

Thanks.
Can you share with this their explanation. Swaps didn't charge on my trading platforms (Tickmill and Нotforex), quick research shows other brokers didn't change it too.
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Old Jul 12, 2018, 11:20am   #3
Joined Dec 2009
quaid started this thread Hi again.

Thanks for responding, apologies, I was traveling and could not respond earlier. They pointed out (after 6/7 emails) that its based on the following:

(price of next future - price of front future) / (expiry date of the front future - expiry date of the previous front future)

Does it really make sense? Is this standard?
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