jgeno

WANTED: Oil $TNK for Storage. $0.01 per Barrel OBO

Long
NYSE:TNK   Teekay Tankers Ltd
NYSE:TNK

You may have noticed a negative sign in front of WTI crude oil today. Yea, that’s not good... TVC:USOIL

It had to do with May Future contracts expiring and an unprecedented amount of oil supply flooding the market.. In short, no one wants to buy 1000 barrels of oil with no where to store it.. the fancy CFA word is called “Contango”, and has to do with the price (or rent) for just holding & storing 1,000 barrels of oil .

Bottom line: Oil Storage and Tankers just became a boiling HOT commodity.. (there were 2 puns in that one)

I’ve got a target of $45.
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