Publications: Notes at the Margin

Limits of WTI Contango; Ethanol Prices and the EPA (March 31, 2014)


This week's report discusses the details and implications of backwardation in the WTI forward price curve, the dramatic rise in ethanol prices, and the natural gas market's odd behavior. WTI has traded at a premium to forward prices for the last three months despite very high commercial stocks. Ethanol now costs more than gasoline in most US markets. Forward natural gas prices are remarkably low given the forecast for lower stocks next year and little increase in production. We also save a little room at the end of the report to examine why Vladimir Putin can do whatever he wants in Europe.


To request subscription information for Notes at the Margin, please Contact Us or send us an Information Request.