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May
21
Brandon B asked:
Lets say theirs an oil contract on the NY Merc for 1000 barrels of oil @ $40. Lets say that oil is in say Africa and needs to go to the USA. Is shipping for the oil included in the $40 price? How does that work?
ELWOOD
Lets say theirs an oil contract on the NY Merc for 1000 barrels of oil @ $40. Lets say that oil is in say Africa and needs to go to the USA. Is shipping for the oil included in the $40 price? How does that work?
ELWOOD
Comments
SusieQ on 23 May, 2009 at 5:41 am #
The prices you see quoted are for oil at the production site - you pay freight !!
60187guy on 26 May, 2009 at 5:02 am #
1) The delivery location is the “inter-connect” in Cushing, Oklahoma. Go to the NYMEX website for more info.
2) African oil would have to be shipped separately and satisfy the quality guidelines in order to be deliverable.
3) Futures contracts should be used for hedging, not merchandising.
Shaquita Massee on 17 November, 2010 at 3:50 pm #
wow, awesome post, I was wondering the same thing. and found your site by google, many userful stuff here, now i have got some idea. bookmarked and also signed up your rss. keep us updated.
