The Silent Contagion in the Oil Futures Curve

Jim Boulden: I think there's a silent contagion spreading through the first four months of the crude oil futures curve. The June, July, August and September contracts have an artificial bid that's bringing a huge amount of short open interest into the market which is holding by producers who don't intend to roll them forward. He says if all the storage tanks are full and there are no storage guys to come swooping in at the last minute and buy those contracts for $10 or $12 cheaper than what the next month's contract is selling for,. What if there is no more storage available at any price? And the answer is the price just keeps going down including going negative," he