Oil Contango

[luckyd1976]

Oil Traders

When there's contango. Like this coming week. Do you see big intraday moves or is all of the moves, premarket? And do you see the corresponding Equities move as well. Im seeing this +$5 contango coming and thinking of taking an Equity position off of it.

Any thoughts on the contango trades? Upstream/Downstream etc...??

 

[Papa Lazarou]

Hi there. What do you mean by 'corresponding equities'?

 

[luckyd1976]

When there's contango.
Does anyone know if the Equities move during those contract rollovers?? (In lock step for a day trade of short term play?)

Hi there. What do you mean by 'corresponding equities'?

Examples
Oil Futures = Any of the Oil sectors or ETFs Basic Materials Sector - Yahoo! Finance Industry browser
Gold Futures = Any of the gold companies or ETFs. Industry Browser - Basic Materials - Gold Industry - Company List

 

[Papa Lazarou]

Oh. I see. I trade oil and I've never looked at the oil sector firms shares in my life!

Might be better to ask an equities trader who trades energy companies? I could be wrong, none of the guys here can shed any light either.

Be interesting to see though.