Sentences with phrase «physical oil»

«There is no doubt that the financial markets are continuing to have an impact on oil, particularly on physical oil,» he said.

For another example, if a large speculator who was very bearish on oil aggressively short - sold the December - 2016 oil contract, driving its price down from $ 64 to $ 60, it would create an opportunity for other traders to lock - in a profit by selling physical oil and buying the December - 2016 futures with the aim of eventually replacing what they had sold by exercising the futures contracts.

It meant that if someone could buy physical oil and store it cheaply they could make a risk - free annualised return of almost 40 % by simultaneously selling July futures contracts.

By the early fall Goldberg noticed that the cash prices being paid for physical oil were significantly lower than even the suddenly weakening futures prices.

For example, if a large speculator who was very bullish on oil bid - up the price of the December - 2016 oil contract from $ 64 to $ 70, it would create an opportunity for other traders to lock - in a profit by purchasing physical oil and selling the December - 2016 futures with the aim of delivering the oil into the contracts late next year.

After the deal, Morgan Stanley will still act as an intermediary between clients and physical oil markets, but will be rid of its own network of storage and transportation assets.

Futures contracts are priced to include the storage costs, so according to the theory of storage equation, one is indifferent between buying an oil futures contract or buying physical oil and storing it until the time of expiration of the contract.

Morgan Stanley is selling its physical oil assets as the Federal Reserve is conducting a review of banks» involvement in commodities markets.

The dozen or so people it is hiring will only partially offset the 100 employees it will lose when and if it sells its physical oil merchanting business to the Russian oil giant Rosneft.

The key differences between the two documents are structural, reflecting the change from a master agreement structure to a terms and conditions structure, which is perhaps more familiar to those operating in the physical oil market, where general terms and conditions form the basis of many trades.