Wednesday, March 09, 2011

Where to Find Contango Charts for Oil and Other Commodities

Our friends over at Hard Assets Investor have just released a new segment called The Contango Report, which charts contango curves and breaks down roll over costs for the energy, metal, grain, and soft complexes.  

Here's a sample for WTI Crude Oil:

Click to enlarge.

CONTANGO WATCH: The WTI Crude Oil forward curve shifted significantly: The front-end features much smaller contango, and the back half is now in backwardation.

ROLL COSTS: In turn, the annualized cost to roll the front-month WTIs fell to 13 percent, or, in other words, close to 1 percent on a monthly basis. These costs are more in line with what we've seen over the last 52 weeks (right-hand-side chart).

BOTTOM LINE: Humpbacked Contango

You can read the full Contango Report at Hard Assets Investor.

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