Tag Archives: Carrying Charges

Why are prices for oil futures with a maturity farer away lower than nearer futures?

oilinvestor asked: Futures contracts for commodities usually have higher prices in the future because of carrying charges and interests. But in case of oil futures, this is not the case. Futures which mature next year are cheaper than the one“s from November 07.
http://finance.yahoo.com/q/fc?s=CLX07.NYM
On top of that, everyone talks about peak oil and rising oil prices [...]

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