Oil 2012 Spread Trade Gives ‘Limited Risk,’ Petromatrix Says
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Investors in oil can make profit with “limited risk” by trading the spread between 2012 prices for U.S. and European crudes, according to Petromatrix GmbH.
The New York oil contract for delivery next month is about $6.50 a barrel cheaper than the equivalent cargo of North Sea Brent. The same spread for shipments in January 2012 is less than $1 a barrel. Supply bottlenecks at the U.S. delivery hub in Cushing, Oklahoma, will likely persist through to 2012 and cause the difference for that year’s oil contracts to widen, Petromatrix said.