AFAIK futures price does not necessarily represent the true cash price that a producer pays for or sells crude oil for. How do you factor in actual cash price of the physical commodity and basis price into your analysis?
Have you looked at hedge fund involvement in the oil mkt? How can you conclude it is the oil majors profiting off these “swings” and not algos with hedge funds?
The_Kidz6 karma
Couple questions:
AFAIK futures price does not necessarily represent the true cash price that a producer pays for or sells crude oil for. How do you factor in actual cash price of the physical commodity and basis price into your analysis?
Have you looked at hedge fund involvement in the oil mkt? How can you conclude it is the oil majors profiting off these “swings” and not algos with hedge funds?
Thank you! Very interesting.
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