Futures Measures

Seasonal Behavior of Crude Oil Spreads

| Sep 21, 2017
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    Futures Measures

    Seasonal Behavior of Crude Oil Spreads

    Sep 21, 2017

    Pete and James dive into the crude oil calendar market and identify trade strategies.

    Trying to find seasonality in Crude Oil futures is very difficult because of the many factors that influence the price of the future. Statistics can identify some trends, but they are typically overwhelmed by other factors.

    Spread trading is a trade that takes out movement in the underlying itself, and focuses on the relationship between different delivery months. Although in general spreads are risk reduction techniques, oil spreads can have large moves.

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