Don’t look now; summertimemaggedon has arrived about two weeks early…
NO SUMMER CAMP, NO FRILLS ALL EXPENSE PAID STAYCATION. Schools are switching to year round and hybrid programs. Beach days consist of the dust from the Sahara winds on my dark show-everything wood floors, and Roku screen saver of Bora Bora precovid existence.
However, there is a family friendly alternative to all of this. Grab the keys, the flamethrower, and the LiC5H3N2O4·H2O, then drive 100 mikes due any direction, and come on back. Ensure that you have water, and an extra tank of gas that you can burn with the flamethrower, and the patience of the Dalail Lama. I’d recommend xm42 lite for “CPS will be called” applications.
Point, clearly as mud, is the change of energy into else, create organic organic demand with combustion, and exhaust the chicken nugget and butter noodle nuclear reactors in the back seat/car seat/federally approved additional safety contraption.
Try the american southwest. You might even be able to teach you kids about our before forefathers and the metric system.
Here’s some actual qualitative information:
“Anyone look at open interest in NGL futures? We admit—we don’t track it all that closely. But we have a few folks that do…an for good reason. If we had more time, we’d probably track it as well. Nonetheless, one of the true gentlemen in the market shared some interest info with us last week. That info? The 7Q/NGE block futures open interest for June is at staggering levels. At last check, that one single month accounted for nearly 20-25% of the open interest on ALL contract months. Now, that wouldn’t mean much if total open interest was a mere couple thousand contracts. In this case though, we are talking about 14,000 contracts for June alone. That amount of open interest could possibly make for some interesting jockeying over the next 3-4 weeks.
In the meantime, after “collapsing” to around a 4 cpg contango last week, the June/July C5 spread has moved back out to 7 cents contango. On a simple interest basis, that contango would equate to a 14% simple return on investment over a 31 day period. On an annualized basis, that is a 168% return on a 50 cent per gallon product. Nice work if you can get it.
Big contangos and big backwardations aren’t generally good for markets. Spreads in that range can lead to distortions. Are we beginning to see the first signs of such action in C5 differentials? Possibly.
Keep an eye out. The next several weeks are going to be interesting, to say the least.
P.S.—To our Canadian readers, enjoy your holiday weekend! Hope the weather cooperates and you have a lovely Victoria Day and May-Long Weekend!”
http://ir.eia.gov/wpsr/overview.pdf
THE DANIMAL APPROVES