Phil Flynn Talks High Oil Prices with ONN.tv

CHICAGO


Flynn suggests that a shift is starting to occur that may win the argument for the peak camp. Today, as oil hits a new record high, the back month contracts for delivery up to eight years out are all trading higher. Some analysts and traders think that the market is finally recognizing the real possibility of supply disruptions, and that oil traders may be taking a longer-term view on the situation. Instead of discounting the near-term demand spikes by selling the further out contracts, the market is actually acting like it may “pay to put oil away.” In other words, if oil industry participants believe that prices will maintain at these levels, then they will gladly store it in hopes that they can charge even more down the road.

Centre Daily