Further to the earlier ideas on the August delivery contract, I would like highlight the fact that it has now become the front contract of the Crude Light futures
curve, and that it did so while being traded at plus 100% from its YTD low. When the June delivery contract went into negative, this contract was trading at around $20/ bbl
. Two months later it is trading above $40/ bbl
and seemingly bulls are still very much confident in their holdings. Buying the dips towards the 150% area from YTD low seems reasonable. This would mean another 25% gain from $40/ bbl
. The chart shows all of the relevant details on the above.