That is pretty savage contango!. In the first time in the history of oil, the WTI contract traded for negative prices, moving all the way to -$40 per barrel on the May contract. 6 billion including assumed debt of approximately $800 million. 16 to the futures contracts 12 months ahead. ” The trick is that storing the crude for the future can only go on so long. Contango Oil & Gas's (MCF, $4. The vast crude oil glut or mega-glut is manifest in the West Texas Intermediate and Brent crude oil price curves, which have moved into a "super-contango. Contango's headquarters is located in Houston, Texas, USA 77002. The energy complex on Wednesday closed lower as crude prices retreated from 2-1/2 week highs on concern an economic recovery from the coronavirus pandemic. The last time the two contracts were in contango was early March 2019. Big energy traders are now scrambling to charter vessels to store oil and take advantage of a market structure called “contango”, whereby future oil supplies are more expensive than those for. But it was in 2007 through 2009 that the oil storage trade expanded. The market craters in about 10-14 weeks when storage (both land and sea based) will be used up with current production #'s. In general, it is generally illegal for insiders to make trades in their companies based on specific, non-public information. For example, contango would be present if May Light Crude (^CLK15) was priced below October Light Crude (^CLK15). Dive deeper with interactive charts and top stories of CONTANGO OIL & GAS COMPANY. I found that the market was in contango 76 percent. average regular retail gasoline price was $1. The Star's cargo may be worth only $45 a barrel today, but sell it for delivery in a year's time, and the price is nearer $60. The EIA has lowered its. California Resources Corporation. HOUSTON, March 12, 2020 (GLOBE NEWSWIRE) -- Contango Oil & Gas Company (NYSE American:MCF) ("Contango" or the "Company"), as a result of the decline in commodity prices in the last several days, and especially oil prices, today provides a brief update on its response to that decline. 717 Texas Avenue, Suite 2900. Management Team - Wilkie S. Antero Resources Corporation. If that's confusing. Contango Oil & Gas Company said Sept. Edit Symbol List Symbol Lookup. The US was the world's largest oil producer in 2019, producing 19. 00%) at $29. In 1993, the German company Metallgesellschaft famously. Here the. Get Started. The depth of contango tightly correlate with scale of the crisis. As Trafigura illustrated in its half-year report last September, it is the disappearance of the contango (i. View daily, weekly or monthly format back to when Contango Oil & Gas Company stock was issued. This website has been prepared by Contango Asset Management Limited (CGA) ACN 080 277 998 on behalf of its fully owned subsidiaries; Switzer Asset Management Limited (SAML) ACN 123 611 978, AFSL 312247, Contango International Management Limited (CIM) ACN 617 319 123, CAR No. Front-of-curve contango spreads in West Texas Intermediate crude, Brent crude, and reformulated gasoline are “narrowing quickly, and are within one day striking distance of backwardation. The contango time spread suggests the market believes there is plenty of oil around and no need to scramble for supplies. As 1993 evolved, however, what had been a pattern of typical backwardation gave way to contango, to the detriment of MG's position. The exposure is obtained through fully funded uncollateralised swaps with Shell Trading Switzerland AG, a member of the Royal Dutch Shell Group. 2 million in the period. For the first time since September, the front-month Brent futures curve has flipped into contango suggesting notable physical supply being added (driving the front-month below the curve) - a sure sign of an oversupplied market. oil producers to borrow space in the U. But because oil is so much more expensive to store than gold is, there is not the same sort of standing inventory available to remediate temporary supply-demand disruptions. Worldwide crude oil prices will average $33 a barrel for 2020 and $46/b in 2021. The foundation of the Company's success is the…. Oil futures forward curves • ir. , Suite 2900 Houston, Texas 77002 Phone: 713. Contango often tells us that a commodity is in equilibrium where supply balances demand or where a state of oversupply or a glut condition exists. Though more expensive, the wide contango structure still supports these near record charter rates for tankers we've been seeing as of late. This monetization process more complex and it combined with gathering of futures premiums in two directions of trade either long or short (Natural gas trading only sell side or out of positions due to huge skew in negative rolling yield that makes any long position as speculative and it is not matched. OIL FUTURES CONTRACTS, VOLATILITY AND RISK MANAGEMENT. Contango Oil & Gas Co's shareholder yield -- a measure of how much capital is returned to stockholders via dividends and buybacks -- is -59. West Texas Intermediate futures in New York declined 7. This was a 1 for 2 reverse split, meaning for each 2 shares of MCF owned pre-split, the shareholder now owned 1 share. 7 million barrels a day starting in May amounts to the largest coordinated cut in history, but is still dwarfed by the much greater decline in oil consumption. Dire predictions of single-digit oil prices may have to wait as China, and the U. It is possible to use various combinations of crude oil and refined products to calculate crack spreads. Play At Ferguson. org are unblocked. For example, when oil prices hit bottom in late 2008 and early 2009, the market was in a steep contango (or super-contango) with spreads between some of the monthly contracts exceeding $1. Given the history of the past 2 years, oil. And further, that there can be limitations and biases to indices such as survivorship, self reporting, and instant history. Vendor 1099 Information. In addition to blog archive access, RBN Backstage Pass™ resources. By 2050, oil prices will be $107. When contango gets really extreme, such that spot prices are well below the prices of distant delivery months, then the oil market sees all sorts of strange behaviors, such as a building boom for storage tanks at the Cushing, Oklahoma delivery point, or the rental of oil tankers which are just anchored to wait for the distant contract month to. May’s WTI contract is at $11. (MCF) on Monday reported a loss of $138. Houston’s Contango Oil & Gas Co. Contango Oil & Gas Co. Contango is the normal state of affairs. Oil market in ‘super contango’ underlines storage fears as coronavirus destroys crude demand U. Contango Oil & Gas Company is an independent energy company. 28 a barrel after earlier dropping. Contango is a condition in a commodity market where the futures price for the commodity is higher than the current spot price. The following presents a detailed Contango Oil & Gas stock price history for your review. Contango Oil & Gas Company has onshore operations in the Gulf of Mexico in water-depths of less than 300 feet. It is a price in USD per barrel equal to the penultimate settlement price for WTI crude futures as made public by NYMEX for the month of production per 2005 ISDA Commodity Definitions. Atkins, Senior Vice President – Exploration, and J. Get the latest Detailed Estimate from Zacks Investment Research. Consequently, over its history, USO has lost value relative to oil. Another unexpected surge in crude-oil inventories has the price of the front-month oil contract falling while buying continues to occur in later-dated contracts. When a market is in contango, longer-dated futures contracts are higher than shorter-dated contracts. Houston-based Contango Oil & Gas Co. A contango-shaped futures curve is not a historical rarity, but the one that traders have toyed with since December was the greatest contango in history. Oil's 12M Contango on April 1st was -43%, the 3rd worst day in the 40-year history of traded futures. Slowing demand for oil has pushed the US oil to enter "contango," a situation where spot prices are lower than the futures prices. Juneau Oil President Brad Juneau said the company is reconnecting with its original partner Contango, “which Ken Peak and I started back in 1999. 717 Texas Avenue, Suite 2900. The bimonthly spread reached $8 at one point. As Trafigura illustrated in its half-year report last September, it is the disappearance of the contango (i. Gulf and Singapore, where major oil hubs are situated. Since late June, it has been in severe backwardation, a situation that has not occurred since the go-go days of late 2007 / early 2008 for the oil market. Oil traders are storing as much as 80 million barrels of oil on tankers at sea, with further ships being sought as land storage sites fill up fast due to a global glut of stocks, shipping industry. The loss is mitigated somewhat by the interest USO earns on its funds (only 10% of funds are needed to secure a contract). Traders can currently buy a barrel of Brent oil for less than $51, while a barrel for delivery in August is going for more than $57—a contango of more than $6. Its operation focuses in Permian Basin, South Texas, Southeast Texas East Texas, Wyoming, and Gulf of Mexico. Also, talk that the U. To access the remainder of Save It for Later - Crude Market Vaporizes; Contango and Storage Plays Take Center Stage you must be logged as a RBN Backstage Pass™ subscriber. 63 a barrel. Here’s proof of how “contango” wrecks oil funds like USO. This is essentially the opposite of a contango market (which has prevailed since 2014. Today’s WTI curve is more in line with the shape that predominated during the oil crash of 2014-16; you know, the “supply glut” that turned out to be a worldwide economic disaster. LC Call Number: TL230. (“Contango”), a Delaware corporation headquartered in Houston, Texas, is an independent natural gas and oil company that focuses primarily on properties in the Gulf of Mexico. 50 a barrel in trading today, up from only $1. The May-June timespread moved deeper into contango, signaling an expanding physical glut even with the curbs. The company reported ($0. Another unexpected surge in crude-oil inventories has the price of the front-month oil contract falling while buying continues to occur in later-dated contracts. 94/b, according to Table 1 of the EIA's Annual Energy Outlook. 88 a barrel earlier in the session between prices for May and June, the lowest level since Nov 2018. It sounds like a variant of a famous and complex Latin dance, but Contango is actually a financial phenomenon involving the trading of futures-based commodities. To begin the lecture, Professor Shiller elaborates on the difference between forwards and futures and on the role of futures markets to infer future prices for the underlying commodity or financial asset. Oil traders are storing as much as 80 million barrels of oil on tankers at sea, with further ships being sought as land storage sites fill up fast due to a global glut of stocks, shipping industry. 16 to the futures contracts 12 months ahead. Write a Comment Cancel reply. 54) and in backwardation through May, 2022. Oil Pump Jack in Texas — Photo by Zbynek Burival on Unsplash. 'On the other hand, oil has been in contango for most of the last year but the price has been in a gradual uptrend. A contango market is when the futures price becomes incrementally more expensive the further out you go in the term structure. April 14, 2020. We have relatively low oil prices now, but the market thinks that they are going to go up. 27/04/2020 17:19:13 1-888-992-3836 Free. 58 a barrel from US$3. As of April 16, data provided by VesselsValue shows that of the 802 VLCCs on the water 60 are now being used as floating. Monday’s historic crash in crude oil dragged prices into negative territory for the first time in history. Contango Oil & Gas Company, an independent oil and natural gas company, acquires, explores, develops, exploits, and produces crude oil and natural gas properties in the shallow waters of the Gulf of Mexico and onshore properties in Texas, Oklahoma, Louisiana, and Wyoming in the United States. and global demand for crude oil and issues involving the physical transportation and storage of crude oil at Cushing, Oklahoma, the primary pricing point for oil traded in the U. History The CEO, Ken Peak, took his life savings of $400k and started the company, which was traded on the OTCBB. Contango Oil & Gas Company is a Houston, Texas based, independent oil and natural gas company whose business is to maximize production and cash flow from its offshore properties in the shallow. From Bloomberg, comes this chart showing the history of contango in crude oil. The market craters in about 10-14 weeks when storage (both land and sea based) will be used up with current production #'s. Borr Drilling Limited. Last year’s flip into backwardation accompanied the most dramatic plunge in crude oil prices in history. In 2008, oil bottomed out at $34. Reply Delete. This website has been prepared by Contango Asset Management Limited (CGA) ACN 080 277 998 on behalf of its fully owned subsidiaries; Switzer Asset Management Limited (SAML) ACN 123 611 978, AFSL 312247, Contango International Management Limited (CIM) ACN 617 319 123, CAR No. This is why I'm initiating coverage of Oil. Dividend Yield and Dividend History Highlights NBL's average cash flow over the past 5. Contango Oil and Gas (MCF) stock price, charts, trades & the US's most popular discussion forums. Vendor 1099 Information. Colyer, Jr - President and CEOMr. There are futures contracts for each month going out many years. Similar to the trend for Brent futures, when oil is in backwardation the Bloomberg Commodity Index has delivered subsequent four- and 12-week average returns of 0. Saudi Arabia, de facto leader of the Organization of the Petroleum. 81m bbl/day, according to the EIA. Contango is a condition in a commodity market where the futures price for the commodity is higher than the current spot price. In recent weeks Brent crude oil, the global oil benchmark, has shifted into backwardation – a state when spot prices are higher than prices for futures contracts, creating a downward-sloping curve for futures prices (see chart). Some believe that in 2005 and 2006 the crude oil market was in contango. By 2030, world demand will drive oil prices to $92. The company reported ($0. The last time the two contracts were in contango was early March 2019. 77 per gallon (gal), the lowest price since February 2016. This term refers to a market situation when the future price of a commodity, in this case WTI crude, is far higher than the current price. But what's happening now is that U. Phone: 713-236-7400 Fax: 713-236-4424. California Resources Corporation. 92% up to 1. Its proved reserves on Dec. In fact, in recent months the market has been in “contango”, which means that the future oil price is higher than today’s price. A strange as this seems it is driven by limited storage. Granite's Alberta Bakken pool, south of Lethbridge, Alberta, is a large, early life oil asset owned 100% by. Gulf Coast market compared to the price of crude oil. Contango Oil & Gas Co. Crimson is an oil and gas company based in Houston. Even if you could find storage and transport, you’d pay dearly for those services. Contango Oil & Gas Company, an independent oil and natural gas company, acquires, explores, develops, exploits, and produces crude oil and natural gas properties in the shallow waters of the Gulf of Mexico and onshore properties in Texas, Oklahoma, Louisiana, and Wyoming in the United States. Baytex Energy Corp. We service and install all types of central air. Upcoming event on CONTANGO OIL & GAS COMPANY. I don’t know a lot about the futures markets, but the article states that some contracts have become more expensive than the spot price for oil, and that this is a rare event called a contango. Previously thought to be impossible, the May contract for West Texas Intermediate (WTI) Oil futures closed at a mind-boggling -$37. Saudi Arabia, de facto leader of the Organization of the Petroleum. Worldwide crude oil prices will average $33 a barrel for 2020 and $46/b in 2021. SHTF when that happens. Oil & Gas Mergers and Acquisitions Report—Yearend 2018 Unrealie potential 2 A tale of two buildups The United States delivered on the unexpected promise it had been showing over the past few years to become the world’s leading oil and gas producer as its crude oil production rose to 11. Black Stone Minerals, L. The depth of contango tightly correlate with scale of the crisis. 25/04/2020 16:37:03 Cookie Policy +44 (0) 203 8794 460 Free Membership Login. 3 per cent to US$26. Contango Oil & Gas Company (MCF) full year performance was -51. In the chart below, the spot price is. It is important to note that a Contango price structure is considered normal for a non-perishable commodity, like crude oil and products, which have a cost. (“Contango”), a Delaware corporation headquartered in Houston, Texas, is an independent natural gas and oil company that focuses primarily on properties in the Gulf of Mexico. It's upward sloping. 06, 2019 (GLOBE NEWSWIRE) -- Contango Oil & Gas Company (NYSE American: MCF) (“Contango,” the “Company,” “we” or “us”) announced today that Thomas H. 4 million in its fourth quarter. Last year's flip into backwardation accompanied the most dramatic plunge in crude oil prices in history. Antero Resources Corporation. Conversely, when a market is in backwardation, the forward price of the futures contract is lower than the spot price. com Tel: +31-(0)76-7676 325 • Managing Director @ PJK International B. If you listen to financial experts and commodity traders discuss market conditions, chances are you have heard them refer to commodity markets like silver, platinum, palladium, oil, or gold as being in either contango or backwardation. Cabot Oil & Gas Corporation. 85 a barrel, the widest. Learn more about our Oil 101 community. Contango Oil & Gas Company (TX) (AMEX: MCF) stock closed at 2. Contango Oil & Gas Company, an independent oil and natural gas company, acquires, explores, develops, exploits, and produces crude oil and natural gas properties in the shallow waters of the Gulf of Mexico and onshore properties in Texas, Oklahoma, Louisiana, and Wyoming in the United States. Contango Oil & Gas's (MCF, $4. Traders can currently buy a barrel of Brent oil for less than $51, while a barrel for delivery in August is going for more than $57—a contango of more than $6. AMEX:MCF Income Statement, February 5th 2020. Our assets are generally pipelines and related facilities acquired from major oil companies including Shell, Chevron, Exxon, Conoco Phillips, among others. During the peak of the 2008-2009 financial. Limited storag. " (Yup, there are lots of superlatives. CONTANGO WATCH: WTI is in contango through most of the one-year forward curve. 37 per barrel while June holds at $22. Mail: patrick. Mid-Con Energy Partners, LP. So, the current contango (2. Similar to the trend for Brent futures, when oil is in backwardation the Bloomberg Commodity Index has delivered subsequent four- and 12-week average returns of 0. Get the latest Detailed Estimate from Zacks Investment Research. Contango and backwardation are names for two opposing phenomena in non-perishable futures markets. Free forex prices, toplists, indices and lots more. History The CEO, Ken Peak, took his life savings of $400k and started the company, which was traded on the OTCBB. Gas and Oil Trucks. But because oil is so much more expensive to store than gold is, there is not the same sort of standing inventory available to remediate temporary supply-demand disruptions. The “coordinated smashdown of gold and silver” was on everyone’s mind this week, but is it true? Did the price of paper gold (futures) divorce from the price of physical gold? One thing is for sure, the dollar gained from 21g to over 22g of gold on Friday. The company reported ($0. A contango market occurs when prompt crude oil prices fall below those further out in the future. Contango was founded in 1986. Find the latest dividend history for Contango Oil & Gas Company Common Stock (TX) (MCF) at Nasdaq. 10 minutes Coronavirus hype biggest political hoax in history. Peak, the company’s founder and longtime Chairman and CEO. The Marshall Islands is fourth with 1, 500 vessels and 37 million tons. Contango and. Conversely, higher prices for delivery dates further in the future are said to be in contango. From Paulson to Wall Street. But it is more reflective of current conditions than predictive. But because oil is so much more expensive to store than gold is, there is not the same sort of standing inventory available to remediate temporary supply-demand disruptions. History Favorite. Contango acquires, develops and operates crude oil and natural gas properties. June contract and forward still managed to trade above $20, with the contango structure, it surely manifested… Read more. ” Peak died in 2013. What price target have analysts set for MCF? 2 brokers have issued twelve-month price targets for Contango Oil & Gas' shares. US gas storage withdrawals lowest in four winters. on oil prices What you need to believe Supply disruption continues USD80-90 Impact on oil prices What you need to believe Stagnation and oversupply USD50-55 Impact on oil prices Global oil demand End user demand growing at 1. OIL FUTURES 101: CRUDE OIL CONTANGO | CLOSING THE GAP: FUTURES EDITION. Here we explain in layman's terms what these terms mean. We have relatively low oil prices now, but the market thinks that they are going to go up. 1254169 and Contango Funds Management Limited (CFML) ACN 085 487 421, collectively referred to as the 'Contango Group'. , led to unusually high inventories of crude oil. This is the super contango, the market situation in which front-month prices are much lower than prices in future months, pointing to a crude oil oversupply and making storing oil for future sales profitable. Crude oil is $50 per barrel now (7 th Oct) and the price of the futures contract is $55 per barrel (31 st Oct)Here the future price is higher than the current spot hence Contango. The crude market is currently trading in what is known as contango, where forward prices are higher than. [email protected] But what's happening now is that U. The situation is called "contango" in the crude. This is why I said one needs to understand the economics. 27/04/2020 17:19:13 1-888-992-3836 Free. When you hear oil prices quoted, you probably hear the nearest futures market. The company earned $37. 586/2 Contango, a technical term in use among the sharebrokers of Liverpool. Losses, adjusted for asset impairment costs, came to 13 cents per share. They can also be in contango, where the price rises with maturity and is higher in the future than it is today. notable moments in oil price history with the 2008 economic crash and the future role the oil futures market has in mitigating price risk. This helpful OPIS glossary can assist you in better understanding many oil industry terms. Plot the historical data regarding WTI Futures Curves by clicking " Historical Futures Curve Data ". 64%, greater than the shareholder yield of merely 7. Backwardation and Contango are used to define the shape and structure of a. Free forex prices, toplists, indices and lots more. MCF Dividend History & Description — Contango Oil & Gas Co. A contango market is one where futures contracts trade at a premium to the spot price. USO holds front month futures on crude oil and on a regular basis sells them as the get close to expiry to buy second month futures which are soon to be front month futures. 420% Gastar Exploration 8. Contango is term oil. 92% up to 1. Houston-based Contango Oil & Gas Co. 45 a barrel, while the six-month spread for US crude broadened to minus $12. It's upward sloping. It is important to note that a Contango price structure is considered normal for a non-perishable commodity, like crude oil and products, which have a cost. As Trafigura illustrated in its half-year report last September, it is the disappearance of the contango (i. Company profile. When compared to total return of other price indices, such as the spot price of crude oil, the impact of backwardation and contango may lead the total return of USOF ’s NAV to vary significantly. During parts of 2009, the level of contango was unusually steep as a combination of slack U. 20, 2019 (GLOBE NEWSWIRE) -- Contango Oil & Gas Company (NYSE:MCF) ("Contango" or the "Company") announced today that the Company entered into a Joint. We work with gas, oil, propane and electric furnaces, boilers, heat pumps and ductless systems. and global demand for crude oil and issues involving the physical transportation and storage of crude oil at Cushing, Oklahoma, the primary pricing point for oil traded in the U. This is essentially the opposite of a contango market (which has prevailed since 2014), when near-month futures sell at a discount to those expiring further out. 37 per barrel while June holds at $22. average gasoline price increased slightly to $1. New York oil futures moved deeper into contango, signaling an expanding glut, while swap prices indicate North Sea cargoes are trading at bumper discounts. But the profitability of the contango trade was so huge it actually paid to charter tankers explicitly just for the purpose of storing oil. Contango Oil & Gas Co's shareholder yield -- a measure of how much capital is returned to stockholders via dividends and buybacks -- is -59. In the past few years, traders have moved beyond trading and into the oil and gas value chain, taking significant positions in the storage of oil and also in the upstream and downstream sectors. Voiceover: Let's do a quick review of contango and backwardation because they really are opposites of each other, but they're used in different context, sometimes with the exact right meaning, sometimes with the not so right meaning, so let's clarify what we're talking about. View Contango Oil & Gas' earnings history. The contango time spread suggests the market believes there is plenty of oil around and no need to scramble for supplies. Since then, the 3-month contango has ballooned to a whopping $7. The situation is called "contango" in the crude. 57/Mcf, as well as 54% of 2021. The concept started to be used by oil traders in the market in early 1990. Peak, the company's founder and longtime Chairman and CEO. These are B- management teams across the board in what is a highly cyclical industry. View recent trades and share price information for Contango Oil & Gas Co Common Stock USD0. An equally important component of the performance of any Oil ETF which aims to track futures prices, though, is the impact of contango, which I provide more detail on below. A price of crude oil at $58 for delivery in April 2019 versus $60 for delivery in April 2020 reflects contango in the oil market. As 1993 evolved, however, what had been a pattern of typical backwardation gave way to contango, to the detriment of MG's position. Contango definition is - premium or interest paid on a fixed day on the London stock exchange by a buyer to the seller to be allowed to defer payment until a future settlement. The “coordinated smashdown of gold and silver” was on everyone’s mind this week, but is it true? Did the price of paper gold (futures) divorce from the price of physical gold? One thing is for sure, the dollar gained from 21g to over 22g of gold on Friday. MCF Dividend History & Description — Contango Oil & Gas Co. 98/barrel, whereas the March 2010. 420% Gastar Exploration 8. com database there are… 712 tank terminals that store crude 3,911 tank terminals that store petroleum products A total of […]. May’s WTI contract is at $11. When contango gets really extreme, such that spot prices are well below the prices of distant delivery months, then the oil market sees all sorts of strange behaviors, such as a building boom for storage tanks at the Cushing, Oklahoma delivery point, or the rental of oil tankers which are just anchored to wait for the distant contract month to. READ | Oil price war ends with Historic OPEC+ deal to slash output; The May-June timespread moved deeper into contango, signaling an expanding physical glut even with the curbs. Historical Trading Data 1 Month Avg. The oil contango tells us demand is going to come back, hopefully in a few months. Contango Oil & Gas Company, an independent oil and natural gas company, acquires, explores, develops, exploits, and produces crude oil and natural gas properties in the shallow waters of the Gulf of Mexico and onshore properties in Texas, Oklahoma, Louisiana, and Wyoming in the United States. Discover historical prices for MCF stock on Yahoo Finance. We have relatively low oil prices now, but the market thinks that they are going to go up. These institutions hold a total of 36,937,600 shares. Upcoming event on CONTANGO OIL & GAS COMPANY. Find the latest Contango Oil & Gas Company (MCF) stock quote, history, news and other vital information to help you with your stock trading and investing. As Tables 3-4 indicate, if MG had 30 million-bbl positions in. , the disappearance of the oil glut) that crushed margins. 00%) at $29. Find the latest dividend history for Contango Oil & Gas Company Common Stock (TX) (MCF) at Nasdaq. Oil is now in contango. EFT (Direct Deposit) Change of Ownership. The firm engages in the exploration, development, production and acquisition of crude oil and natural gas properties. Contango Oil & Gas Company (Contango) is an independent oil and natural gas company. Free forex prices, toplists, indices and lots more. Coronavirus: oil price collapses as demand falls further - BBC News, Donald Trump downplays historic oil price drop as a ’short term’ problem, How the oil price plunge affects African companies | DW News, How the US oil price fell below zero | FT. It is engaged in the exploration, development, exploitation, and acquisition of crude oil and natural gas properties in the onshore Texas Gulf Coast, offshore properties in the shallow waters of the Gulf of Mexico and Rocky Mountain regions of the United States. One of the original strategies was to focus on oil and gas exploration as it is an area where a lot of value can be created. A market is said to be in Contango (also known as forwardation) when the spot price is way lower than the forward price of a futures contract whereas a market is said to be in Backwardation when the spot price is higher than the forward price of the futures contract. Not only was this much more than the expected increase of. Conversely, when a market is in backwardation, the forward price of the futures contract is lower than the spot price. Home Homepage Membership Levels Membership Data Coverage Complete Stock List Founder's Message The book Value Investing Forum Podcast Free Trial. However, much like options, the futures price is not always exactly the same as there's a little bit of time premium equivalent (based on anticipation of changes in future oil prices). corporate issuers, including first- and second-lien loans and high yield corporate bonds of varying maturities. Strategic Petroleum Reserve (SPR) will enable producers to take advantage of the considerable contango in the. Led by a highly skilled management team with over 100 years’ combined experience in the onshore oil and gas industry, Magnolia has interests in over 154. Oil's 12M Contango on April 1st was -43%, the 3rd worst day in the 40-year history of traded futures. 28%, respectively, compared with returns of -0. View the latest MCF stock quote and chart on MSN Money. WTI crude oil has been in contango for most of the past 4 years. Contango Oil & Gas Co is an independent oil and natural gas company. On average, they anticipate Contango Oil & Gas' share price to reach $1. The current steep backwardation on the chart above can be attributed to several factors: Recent geopolitical events, supply disruptions , and high seasonal refinery demand have driven up the price of the front month contract. Last year’s flip into backwardation accompanied the most dramatic plunge in crude oil prices in history. 98 percent annualized from 5. But it is more reflective of current conditions than predictive. On Wednesday, the Energy Information Administration reported that crude inventories jumped by 4. Mission Statement. Current contango in oil markets with futures prices much greater than spot. Our current operations are focused primarily on the oil and liquids-rich portion of. Barron's also provides information on historical stock ratings, target prices, company earnings, market valuation and. Wood, Donald F. Previously thought to be impossible, the May contract for West Texas Intermediate (WTI) Oil futures closed at a mind-boggling -$37. Now contango, which is sometimes called forwardation, … is just a situation where the futures price … of a commodity is higher than the expected spot price … at maturity, and it dramatically impacts … some of the products that are out there, … like, for instance, the U. The depth of contango tightly correlate with scale of the crisis. The last time a super contango appeared on the market was during the previous glut of 2015. Losses, adjusted for asset impairment costs, came to 13 cents per share. AMEX:MCF Income Statement, February 5th 2020. A contango-shaped futures curve is not a historical rarity, but the one that traders have toyed with since December was the greatest contango in history. is an oil and natural gas company. ” Peak died in 2013. Contango acquires, develops and operates crude oil and natural gas properties. This situation arises under abnormal conditions such as shortage of supply of a commodity in the short term. The volatility of Contango Oil & Gas Co's share price is greater than that of 93. Contango Oil & Gas Company (MCF) Dividend History. Investors bet on the future of oil prices through a financial instrument, oil futures in which they agree on a contract basis. [email protected] Reports and Filings. The oil contango tells us demand is going to come back, hopefully in a few months. It is estimate that the price of storing a barrel oil is 41 cents per month compared to contango of 65 cents for the same period. The chart says us that most of the historical contango is from -0. It is a price in USD per barrel equal to the penultimate settlement price for WTI crude futures as made public by NYMEX for the month of production per 2005 ISDA Commodity Definitions. • PJK International: 'Market research company specialized in NWE oil markets' - ARA / Rhine barge freight rates - ARA oil product stocks - Market analysis reports - Consultancy & Quant research. Contango Oil & Gas Company. Find the latest Crude Oil WTI prices and Crude Oil WTI futures quotes for all active contracts below. HOUSTON, March 12, 2020 (GLOBE NEWSWIRE) -- Contango Oil & Gas Company (NYSE American:MCF) ("Contango" or the "Company"), as a result of the decline in commodity prices in the last several days, and especially oil prices, today provides a brief update on its response to that decline. Saudi Arabia, de facto leader of the Organization of the Petroleum. Contango is the normal state of affairs. 50/b) at the start of the week and closer to $50,000-$60,000/d ($4. Contango Oil & Gas Co. Patrick Kulsen, MSc. on oil prices What you need to believe Supply disruption continues USD80-90 Impact on oil prices What you need to believe Stagnation and oversupply USD50-55 Impact on oil prices Global oil demand End user demand growing at 1. In the past few years, traders have moved beyond trading and into the oil and gas value chain, taking significant positions in the storage of oil and also in the upstream and downstream sectors. 7 million barrels for the week ended Feb. Contango Oil & Gas Company is a Houston, Texas based, independent oil and natural gas company whose business is to maximize production and cash flow from its offshore properties in the shallow. Contango Oil & Gas downgraded to neutral from buy at Alliance Global MarketWatch. Then you add both and sell it at a price of $90 per barrel. SHTF when that happens. West Texas Intermediate futures in New York declined 7. Contango and backwardation are names for two opposing phenomena in non-perishable futures markets. You can see Contango Oil & Gas’s historic earnings and revenue, below, but keep in mind there’s always more to the story. Contango tells us the world is running out of places to store crude oil Contango is a condition where prices for deferred delivery are higher than for nearby delivery. , led to unusually high inventories of crude oil. (Bloomberg) -- Usually when "contango" comes up in a markets story, one reaction might be "Huh?" while another might be "Where's my oil tanker?" That's because contango and its sister term, backwardation, are used most often in the context of futures markets for commodities. Wednesday, December 20, 2017. In recent weeks Brent crude oil, the global oil benchmark, has shifted into backwardation - a state when spot prices are higher than prices for futures contracts, creating a downward-sloping curve for futures prices (see chart). Find the latest Contango Oil & Gas Company (MCF) stock quote, history, news and other vital information to help you with your stock trading and investing. 31 totaled 116 billion cubic feet equivalent, including 61. While oil may be appealing, USO often suffers from severe contango making the product more appropriate for short-term traders. As crude oil prices swooned, contango grew spectacularly, until it peaked in January 2009. This isn't Disney. the oil market has returned to contango--a situation that could punch big holes in any gains by oil futures traders. Insofar as evidence is concerned, the report points to the the current contango in the energy market and the co-existence of historically high prices and high inventories as a smoking gun that proves that energy prices have become unmoored from fundamentals, and are instead driven by speculation. 32%) at $23. watch_later. Description. The contango time spread suggests the market believes there is plenty of oil around and no need to scramble for supplies. It acknowledges, however, that increased North American unconventional oil production created the global over-supply that caused oil prices to collapse. We have relatively low oil prices now, but the market thinks that they are going to go up. Experienced Senior Geologist with a demonstrated history of working in the oil & energy industry. Matador Resources Company is an independent energy company engaged in the exploration, development, production and acquisition of oil and natural gas resources in the United States, with an emphasis on oil and natural gas shale and other unconventional plays. It has hedges in place for 72% of forecast 2020 natural gas production at $2. Houston TX, 77002. This gives OPEC an edge from a relative competiveness perspective given that OPEC producers sell almost. View recent trades and share price information for Contango Oil & Gas Co Common Stock USD0. Since the launch of Oman futures on DME the average front-month structure has been just +$0. 94/b, according to Table 1 of the EIA's Annual Energy Outlook. We will answer your call day and night. , Suite 2900 Houston, Texas 77002 Phone: 713. , right down to small, single-play, domestic focused companies. I am sure everyone is aware about the events of early last week in regards to the prices of oil futures contracts dropping below zero. Given the history of the past 2 years, oil. The company insiders' interest are more aligned with external shareholders in this case. Essentially, this means that producers are paying buyers to take it off their hands as global storage space for oil is full and demand has dried up due to the coronavirus. Oil market in ‘super contango’ underlines storage fears as coronavirus destroys crude demand Published: April 18, 2020 at 10:59 a. Not only was this much more than the expected increase of. The shape of things to come: crude oil futures, the curve and contango. Discover historical prices for MCF stock on Yahoo Finance. Crimson Midstream LLC is a provider of crude oil transportation and storage services in California, Louisiana, and offshore Gulf of Mexico. Last update 04/13/2020. Contango was founded in 1986. Gulf Coast market compared to the price of crude oil. That's the cost, I think it's April, and then it just keeps going up. Some believe that in 2005 and 2006 the crude oil market was in contango. But a pricing structure in the oil market known as contango, where current oil futures contracts are priced lower than the next month, will derail profits for any longer-term investors. Monday, August 19, 2019. However, over USO's history, oil has been in contango more often than backwardation. Contango Oil & Gas Company is a Houston, Texas based, independent oil and natural gas company whose business is to maximize production and cash flow from its offshore properties in the shallow. At 1630 GMT Wednesday, the contango between April/May was 12 cents/b, with April at $54. 16 to the futures contracts 12 months ahead. Conversely, higher prices for delivery dates further in the future are said to be in contango. Contango refers to a situation where the future spot price is below the current price , and. As crude oil prices swooned, contango grew spectacularly, until it peaked in January 2009. All said, forecasts of $40 oil early next year are not off. It sounds like a variant of a famous and complex Latin dance, but Contango is actually a financial phenomenon involving the trading of futures-based commodities. It is possible to use various combinations of crude oil and refined products to calculate crack spreads. Colyer, Jr - President and CEOMr. June contract and forward still managed to trade above $20, with the contango structure, it surely manifested… Read more. 31, 2020, ended with the most working natural gas in storage since the 2016. With demand at near-paralysis, oil and fuel tanks around the world are close to brimming — a stark evidence of the global glut and a function of the "contango" structure of the futures market. Sort by Relevance Rating Date. Executive Summary. Crude Oil rallies, but a widening Contango could lead to a collapse in oil prices during 2007 Commodities / Analysis & Strategy Dec 03, 2006 - 12:50 AM GMT. Find the latest Contango Oil & Gas Company (MCF) stock quote, history, news and other vital information to help you with your stock trading and investing. The energy complex on Wednesday closed lower as crude prices retreated from 2-1/2 week highs on concern an economic recovery from the coronavirus pandemic. However, much like options, the futures price is not always exactly the same as there's a little bit of time premium equivalent (based on anticipation of changes in future oil prices). On April 27, 2020, the U. Experience shows the crude oil market cycles or oscillates between periods of negative spreads (contango) and positive spreads (backwardation) that mirror periods of over- and under-supply. This isn't Disney. Juneau Oil President Brad Juneau said the company is reconnecting with its original partner Contango, “which Ken Peak and I started back in 1999. oilfields), fell to a negative $37. WTI crude oil has been in contango for most of the past 4 years. 4 billion cubic feet. Insofar as evidence is concerned, the report points to the the current contango in the energy market and the co-existence of historically high prices and high inventories as a smoking gun that proves that energy prices have become unmoored from fundamentals, and are instead driven by speculation. As crude oil prices swooned, contango grew spectacularly, until it peaked in January 2009. A contango market is one where futures contracts trade at a premium to the spot price. Why Commodity ETFs Have Gone Off Track The collapsing contango in Brent crude which on one hand has cheered investors as it reduces the pain of holding a long position could in near term lead to rising supply as storage plays are. However, today's market may provide investors with a great entry point. It's in contango, normal. To restore oil and gas production and development in the United States in fields that are not operating to their potential. This is the super contango, the market situation in which front-month prices are much lower than prices in future months, pointing to a crude oil oversupply and making storing oil for future sales profitable. But it is more reflective of current conditions than predictive. The index comprises stocks in the S&P Total Market Index that are classified in the GICS oil & gas exploration & production sub-industry. 64%, greater than the shareholder yield of merely 7. Contango Oil & Gas Company is a Houston, Texas based, independent oil and natural gas company whose business is to maximize production and cash flow from its offshore properties in the shallow. 65 a barrel at 1210 GMT. Management Team - Wilkie S. June contract and forward still managed to trade above $20, with the contango structure, it surely manifested… Read more. The Star's cargo may be worth only $45 a barrel today, but sell it for delivery in a year's time, and the price is nearer $60. Over the past several months, Contango Oil & Gas Company shareholders have received a steady stream of bad news. (OED) Questions: 1) Was the term really invented or was it taken from other contexts, from a local dialect or a foreign language for instance? 2) The opposite of contango is the more obvious literal term "backwardation". When contango gets really extreme, such that spot prices are well below the prices of distant delivery months, then the oil market sees all sorts of strange behaviors, such as a building boom for storage tanks at the Cushing, Oklahoma delivery point, or the rental of oil tankers which are just anchored to wait for the distant contract month to. The US 2019-20 heating season, which ran from Nov. April will be one of the toughest months in history for oil, according to Rystad Energy's head of oil markets Bjornar Tonhaugen. Insiders are officers, directors, or significant investors in a company. The contango is greater than during the financial. That is pretty savage contango!. The six-month Brent contango spread from April to October on Feb. The May-June timespread moved deeper into contango, signaling an expanding physical glut even with the curbs. 98 percent annualized from 5. Contango tells us the world is running out of places to store crude oil Contango is a condition where prices for deferred delivery are higher than for nearby delivery. 2 million barrels of oil, condensate and liquids. gas is far from “equivalent” in the financial markets these days). Announces 2019 Year End Reserve Metrics. But the profitability of the contango trade was so huge it actually paid to charter tankers explicitly just for the purpose of storing oil. Contango Oil & Gas Co's shareholder yield -- a measure of how much capital is returned to stockholders via dividends and buybacks -- is -59. Contango Oil & Gas Company is an independent energy company. 5%, and the May-June timespread moved deeper into contango, indicating that traders see the physical glut worsening even with the output cuts. Difference between Contango and Backwardation Basis Definition Contango Contango refers to the situation where the Future prices of stock are higher than the current spot price Future Curve Price Difference Most Happen in Case of Upward Sloping Future Price > Spot Price Commodity Backwardation It refers to the market situation where the Future. May 2020 contract, which will expire tomorrow (Apr 21, 2020), traded as low as -$40. OilandGas360. Main View Technical Performance Custom. Unclaimed Funds. Strategic Petroleum Reserve (SPR) will enable producers to take advantage of the considerable contango in the. Essentially, this means that producers are paying buyers to take it off their hands as global storage space for oil is full and demand has dried up due to the coronavirus. ] And essentially, the future price of oil is now higher than what oil is worth today. 7 million barrels a day starting in May amounts to the largest coordinated cut in history, but is still dwarfed by the much greater decline in oil consumption. Also, talk that the U. Contango Oil and Gas (MCF) stock price, charts, trades & the US's most popular discussion forums. In a contango market, prices in the short term are lower than in future months, which encourages traders to store oil for sales in the future at a higher price. the oil market has returned to contango--a situation that could punch big holes in any gains by oil futures traders. Note that in the past KEEL ALLAN D also reported insider trading activities as an insider of the following companies:. The depth of contango tightly correlate with scale of the crisis. The last time the two contracts were in contango was early March 2019. WTI crude oil has been in contango for most of the past 4 years. Oil Settles in Negative Territory for First Time Ever By NinjaTrader | April 21, 2020. One of the most significant differences between land in the public land states and state land states is that public land was surveyed prior to being made available for purchase or homesteading, using the rectangular-survey system, otherwise known as the township-range system. It acknowledges, however, that increased North American unconventional oil production created the global over-supply that caused oil prices to collapse. The oil market has flipped into what the industry calls a contango: spot prices are lower than forward prices. The foundation of the Company's success is the…. News for Contango Oil & Gas Co. More oil has been put into storage as prices have fallen and the market has entered contango — meaning oil prices will be better in a few months and it is more profitable to store oil and sell it later. For its structure, the front/second month NYMEX crude curve remains backwardated, rising to $2. Description. The depth of contango tightly correlate with scale of the crisis. Discover historical prices for MCF stock on Yahoo Finance. Accordingly, WTI did something it’s never done before. natural gas). Alongside with Natural gas contango monetization Oilgasfund also monetize contango in Oil. So oil prices can move to very large conditions of contango, or to the opposite condition known as “backwardation” like we are seeing right now. 08% (the bright column is the zero). com database there are… 712 tank terminals that store crude 3,911 tank terminals that store petroleum products A total of […]. Oil traders are storing as much as 80 million barrels of oil on tankers at sea, with further ships being sought as land storage sites fill up fast due to a global glut of stocks, shipping industry. oil producers to borrow space in the U. It is engaged in the exploration, development, production and acquisition of crude oil, natural gas and natural gas liquids reserves in the Gulf of Mexico. Founded in 1919, TXOGA is the oldest and largest group in the State representing petroleum interests and continues to serve as the only organization which embraces all. But the profitability of the contango trade was so huge it actually paid to charter tankers explicitly just for the purpose of storing oil. Jun WTI crude oil (CLM20) closed down -$0. Crude oil is $50 per barrel now (7 th Oct) and the price of the futures contract is $55 per barrel (31 st Oct)Here the future price is higher than the current spot hence Contango. 84) is pulled down to the spot price ( $11) or whether there will be more of a merger over the next month…. Contango Oil & Gas Company, an independent oil and natural gas company, acquires, explores, develops, exploits, and produces crude oil and natural gas properties in the shallow waters of the Gulf of Mexico and onshore properties in Texas, Oklahoma, Louisiana, and Wyoming in the United States. Market capitalization (or market value) is the most commonly used method of measuring the size of a publicly traded company and is calculated by multiplying the current stock price by the number of shares outstanding. Contango Oil and Gas (MCF) stock price, charts, trades & the US's most popular discussion forums. , led to unusually high inventories of crude oil. Contango occurs when the front month contract is cheaper than contracts dated further out. US gas storage withdrawals lowest in four winters. Home Homepage Membership Levels Membership Data Coverage Complete Stock List Founder's Message The book Value Investing Forum Podcast Free Trial. In 2008, oil bottomed out at $34. Phone: 713-236-7400 Fax: 713-236-4424. Essentially, this means that producers are paying buyers to take it off their hands as global storage space for oil is full and demand has dried up due to the coronavirus. Professional Installation Service. ASX futures were down 36 points or -0. Oil traders struggling to navigate one of the biggest oil crashes in history say the worst is yet to come. When a market is in contango, the forward price of a futures contract is higher than the spot price. Free forex prices, toplists, indices and lots more. A contango market implies traders expect oil to be higher in the future, encouraging them to store oil now to sell later. Many participants—including Wall Street giants, such as Morgan Stanley, Goldman Sachs, and Citicorp—turned sizeable profits simply by sitting on tanks of oil. Contango Oil & Gas Company (MCF) full year performance was -51. 50/b) mid-week, as major oil companies and. The crude-to-gas ratio is a measure of the relative value of hydrocarbons in a liquid form (e. Brigham Minerals, Inc. Then it recovered to $107 in the next four years, creating the very same “contango” situation we are in today:. An equally important component of the performance of any Oil ETF which aims to track futures prices, though, is the impact of contango, which I provide more detail on below. The WTI Futures Curve is a contractual agreement for the price of oil at a specific date in the future. This is why I said one needs to understand the economics. The front two months of ICE Brent crude futures flipped into contango on February 3 after the expiry of the March contract. If you listen to financial experts and commodity traders discuss market conditions, chances are you have heard them refer to commodity markets like silver, platinum, palladium, oil, or gold as being in either contango or backwardation. While the deal is expected to close before the end of this year, Contango officials said it has an effective date of July 1. upstream and downstream oil. If you want to dig into the details and history of contango, check out this article. 7 million barrels for the week ended Feb. Contango in the oil market. the oil market has returned to contango--a situation that could punch big holes in any gains by oil futures traders. 16/b, again quoted in 2018 dollars. OIL FUTURES 101: CRUDE OIL CONTANGO | CLOSING THE GAP: FUTURES EDITION. But the profitability of the contango trade was so huge it actually paid to charter tankers explicitly just for the purpose of storing oil. 3 per cent to US$26. Contango Oil & Gas Company, an independent oil and natural gas company, acquires, explores, develops, exploits, and produces crude oil and natural gas properties in the shallow waters of the Gulf of Mexico and onshore properties in Texas, Oklahoma, Louisiana, and Wyoming in the United States. Contango Oil & Gas Company is an independent energy company. 32 USD a barrel - a 321% drop. 00/bbl, while the value of the US’s largest crude oil ETF, United States Oil Fund (USO-US), increased only 34%. By 2030, world demand will drive oil prices to $92. 50/b) at the start of the week and closer to $50,000-$60,000/d ($4. Demand worries flipped the oil market into a contango last week, a market structure where prices for near-term contracts are lower than those for later contracts, indicating ample supplies. Contango Oil and Gas (MCF) share price, charts, trades & the UK's most popular discussion forums. Crude oil is now into a 25 month stretch of contango with 11 months since the bottom (using Dec. This is a pretty rare occurrence. 1% of current production, and is planning to double production to 4 billion BOE a day by 2016 (that’s “barrels of oil equivalent,” a good amount of it is actually natural gas, though nat. So oil prices can move to very large conditions of contango, or to the opposite condition known as "backwardation" like we are seeing right now. The Futures Curve is not a forecast of future spot prices. This was a result of the perception either of a future supply shortage or a present supply gluts. Crude oil is $55 per barrel and the price of the futures contract is $50 per barrel (31 st Oct). The six-month Brent contango spread from April to October on Feb. Monday, August 19, 2019. Saudi Arabia, de facto leader of the Organization of the Petroleum. 92/b and May at $55. 45 a barrel while the six-month spread for U. Agrees To Sale To International Petroleum Corporation For $0. Financial Analysts, stockbrokers, interested investors and financial media desiring information about Contango Oil & Gas Company should contact Investor Relations at 713. Similar to the trend for Brent futures, when oil is in backwardation the Bloomberg Commodity Index has delivered subsequent four- and 12-week average returns of 0. The energy complex on Wednesday closed lower as crude prices retreated from 2-1/2 week highs on concern an economic recovery from the coronavirus pandemic. In 2009, oil prices started to recover off the bottom but due to oversupply, there was still a significant contango in the futures market. MCF Dividend History & Description — Contango Oil & Gas Co. Insiders are officers, directors, or significant investors in a company. Cyclical crisis with deep issues in supply/demand in oil market as rule related with. ] And essentially, the future price of oil is now higher than what oil is worth today. These institutions hold a total of 36,937,600 shares.
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