Re:I tried to buy an actual barrel of crude oil (2015)
by bluGill on Tuesday April 21, 2020 @09:20AM
(#22934684)
Better yet you can play hedging games with your oil. Sell a june delivery contract to lock in your profit now. If June prices collapse buy a contract to take delivery in June and sell one to deliver in July. You never have to get to Port until prices are high enough to be worth actually making a delivery, and you make money every month.
Details of the above are important to get just right. It works out if you get all the details right.
Re:I tried to buy an actual barrel of crude oil (2015)
by BloominOnion on Monday April 20, 2020 @09:45PM
(#22931025)
Ran some basic figures for 6 months:
Barrels 2000000
lease cost / day $350,000.00
Barrel cost -$37
Take delivery profit $74,000,000.00
After 180 days storage $63,000,000.00
Sell/barrel $20
Net $51,000,000.00
It looks like most tankers are ~200,000 metric tons which at ~8 barrels per metric ton is roughly 1.6 million barrels. You also really only need to store it for a month, I think June futures are around $20 still, and so it's a diff of ~$60/barrel.