Commodity Corner

Views on commodities and energy

Oil Market Contango Widening

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0709-contango-fig-11The spread between front-month oil futures and contracts for later delivery on the New York Mercantile Exchange (see Fig. 1) has widened dramatically this month. (See Fig. 2)0709-contango-fig-2The widening contango frequently portends a rise in inventories. For example, in Fig. 3, it can be seen that when the discount for fronth-month crude to second-month crude widened to near $4 a barrel earlier this year, inventories jumped to 19-year highs. The relationship between inventories and the outright futures price can be seen in Fig. 4. 0709-contango-fig-30709-contango-fig-41

from Environment Forum:

From Suds to Sunshine in Brooklyn

A green contracting outfit based in a former Brooklyn brewery says it's the first business in a major U.S. city that can sell power back to the grid that it generates from the sun.

New York state gave Big Sue, LLC, which has about 3,500 square feet of solar panels on its roof, the OK to sell any extra power it generates from the panels back to the grid.