Related Articles
Leaders
Forward article link
Share PDF with colleagues

Coming down

In the third of our six-part series, our trader navigates a plan with deal-altering drugs

This article is the third of a six-part series, "A day in the life… of an oil trader" A cargo of gasoline is offered in the market with a five-day delivery window from June 20-25. We bid the offer, and end up getting filled on the trade. Knowing that we're going to take title of the product in the month of June we will be selling July futures to hedge it. We most likely won't sell the physical product until the month of September, so we buy July and sell October futures. This helps us manage the time lag between taking delivery and making a sale. Now the fun begins of managing these barrels through our logistical system, the majority of which are leased assets. We decide that the best way

Also in this section
New crisis and old
22 January 2018
Subdued oil prices and intractable wars cast a shadow over the year
Oil through the worse?
22 January 2018
Opec cut, shale grew, stocks fell, demand soared, prices rose and balance—the oil market's magic word—drew near
Peak demand and oil's long-term trap
19 January 2018
Fixating on the timing of a peak in oil demand is misplaced. Rather, the peak's significance is in shifting the paradigm, from perceived scarcity to perceived abundance. And it poses a problem for low-cost producers