Timing Indicators for Structural Positions in Crude Oil Futures Contracts
8 Pages Posted: 11 Jun 2016
Date Written: June 7, 2016
This article argues that it is plausible that there are two fundamental metrics that could be useful for deciding upon crude oil futures positions: (1) whether there are ample inventories or not; and (2) whether spare capacity is at pinch-point levels or not. The article will further argue that a dynamic allocation strategy alone is not sufficient for holding the line against losses in a crude-oil-dominated strategy.
Keywords: Crude oil futures, spare capacity, structural positions, futures contracts, contango, backwardation, asset allocation
JEL Classification: G11, Q41
Suggested Citation: Suggested Citation