Crude oil price tends to make significant price gains in the summer, as vacationers and the annual trek of students returning to college in August creates increased demand for unleaded gasoline. The market also tends to price in a premium for supply disruptions due to threats of hurricanes in the Gulf of Mexico. However, towards mid-September, we often see a seasonal tendency for prices to peak out, as the driving and hurricane seasons begin to wind down. Shorting the February crude oil futures contract in mid-September and holding until on or about December 9 has produced 20 winning trades in the last 31 years. This gives the trade a 64.5% success rate and theoretical total gains of $72,890 per futures contract. Following three consecutive years of losses, this trade was successful last year as crude slid from over $103 a barrel in September to the mid to upper $90s.
Posted on: Wed, 10 Sep 2014 12:54:52 +0000
Trending Topics
Recently Viewed Topics
© 2015