NYMEX-Crude rallies on stimulus hopes, spread play.
U.S. crude oil futures ralliedfurther Friday afternoon on hopes that passage of an economicstimulus package expected later in the day will help halt anoil demand slowdown. Spread play on the front-month March crude and the April
contract also helped pull up prices, further narrowing the
contango or the premium further months have over the the
front-month. "Those that were short March and long April are reversing
that, taking profits and getting out of that spread play before
the long weekend.
Flynn added that active trading was also seen in the Marchcontract options, which will expire on Tuesday. March crudeitself will expire on Feb. 20.
Looks like a bounce on stimulus hopes, but onlyconcentrated on the two front months. So just a slightretracement in the contango. Also, crack spreads are givingback some of the recent gains," said Tom Bentz, analyst at BNPParibas Commodity Futures Inc
Friday, February 13, 2009
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