@skells @NBS @harblinger lynn is great
@skells @NBS @harblinger In our DCF model, we assume U.S. natural gas prices of $4.64 per thousand cubic feet in 2022 and $3.88 in 2023. Our long-term assumption is $3.30 beginning in 2024. For oil, we assume Brent prices of $88 per barrel in 2022 and $81/bbl in 2023. Our long-term oil price assumption is $60/bbl.
@11112011 @NBS @harblinger yeah i thought that was cute
@skells @NBS @11112011 Inspired to plot out the oil futures curve
https://www.cmegroup.com/markets/energy/crude-oil/light-sweet-crude.quotes.html
"normally" you pay less for near dated and more for futures further out, that makes sense because you have to pay for storage, etc, but the curve is sloping so you pay less for oil further out in time (https://www.cmegroup.com/education/courses/introduction-to-base-metals/what-is-contango-and-backwardation.html)
could do a calendar spread (sell SEPT22, buy FEB23) to bet on the curve going back into contango
I'm not pulling the trigger on anything there yet
https://www.cmegroup.com/markets/energy/crude-oil/light-sweet-crude.quotes.html
"normally" you pay less for near dated and more for futures further out, that makes sense because you have to pay for storage, etc, but the curve is sloping so you pay less for oil further out in time (https://www.cmegroup.com/education/courses/introduction-to-base-metals/what-is-contango-and-backwardation.html)
could do a calendar spread (sell SEPT22, buy FEB23) to bet on the curve going back into contango
I'm not pulling the trigger on anything there yet
