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212 comments on DrumBeat: July 8, 2008

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Consumer on July 8, 2008 - 10:57am Permalink | Subthread | Parent | Comments top

You are taking the same counterparty risk buying the real stuff and storing it until 2013. People will take your money now, and sell you oil, but will the guy who comes to get the oil in 2013 bring you any money?

The risk may be higher or lower with actuals vs. futures, I don't know, but it's the same type of risk, and shouldn't be written off.

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mcgowanmc on July 10, 2008 - 8:49am Permalink | Subthread | Parent | Comments top

No. Because you've got the actuals in hand.

It's now "performance" risk. And who's talking about a guy coming in 2013?

And while you're waiting, you use it yourself( more on request).

The only way you get hurt is you can't afford to store it.

And if you can't afford to store it, you shouldn't be in the market anyway.

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212 comments on DrumBeat: July 8, 2008

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