November 25, 2009 * Contango
pipeline added to display of NOAA
To understand the effect of contango
and backwardation, we must first explain how the typical oil or natural gas ETF functions.
He added, "The company's board of directors is supportive of the acquisition and is very pleased to have secured the continuing services of Contango
Asset Management as its investment manager after this transaction.
In short, contango
exists when the future price of oil is higher than the current or spot price.
The steep contango
, reflecting weaker prompt demand, came after the closure of China's Dalian port on July 19 following a pipeline explosion and an oil spill, which forced PetroChina to divert at least one Very Large Crude Carrier (VLCC) to South Korea and another VLCC to the UAE.
Portable [FCs] are finally being commercialized, and we expect the market size to reach $1 billion in sales by 2010," said Contango
Capital managing partner John Berger.
For example, if the spot price is $45, and the futures price is higher, we have a situation known as contango
, which is a drag on performance.
This exploration is operated by the company's wholly-owned subsidiary, Contango
Operators Inc (COI).
narrowed and Brent backwardation widened.
It might run into the third quarter of next year," said analyst David Wech at JBC Energy, adding, "The high contango
reflects the supply-demand imbalance which is most dramatic in distillates.
Capital Partnership Management, LLC recently announced it has finalized an investment of $500,000 in Orem, UT-based Trulite, Inc.
HOUSTON -- Contango
Oil & Gas Company (NYSE MKT: MCF) announced today that it has reached total depth on its Ship Shoal 134 prospect (Eagle) and no commercial hydrocarbons were found.