tag:blogger.com,1999:blog-7332340.post5815915958239847933..comments2024-02-28T05:22:35.956-05:00Comments on FinanceProfessor.com: Crude oil is getting cheaper — so why isn't gas?FinanceProfessorhttp://www.blogger.com/profile/05948754590238007311noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-7332340.post-11917478125561831542009-02-24T15:55:00.000-05:002009-02-24T15:55:00.000-05:00This is how you get screwed. If you put on a hedg...This is how you get screwed. If you put on a hedge in the futures or forwards you can have situation where BOTH "legs" or positions move against you.<BR/><BR/>e.g. Short Gas, Long Oil or Long gas, short oil.<BR/><BR/>Being a former CFTC registered floor trader at the CBOT and a permit holder at the Bourse de Montreal I know all too well.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7332340.post-86309948838298781882009-02-16T16:11:00.000-05:002009-02-16T16:11:00.000-05:00One also has to consider supply and demand. By th...One also has to consider supply and demand. By this I mean demand for gasoline by the consumer and supply of WTI in Cushing, OK. The tanks in Cushing, OK are overflowing at the moment. Investment banks and oil traders are doing their best to secure tankers for storage so that they can take advantage of the steep contango. This problem is exacerbated when contracts roll. Imagine you are long Todd Mhttps://www.blogger.com/profile/07758100863395093946noreply@blogger.com