Who is contango resources?

Last Update: April 20, 2022

This is a question our experts keep getting from time to time. Now, we have got the complete detailed explanation and answer for everyone, who is interested!

Asked by: Catalina Wilderman
Score: 4.2/5 (4 votes)

Contango is a platform used to acquire, produce, develop, and manage domestic oil and gas assets. We operate in a manner that prioritizes the safety of our employees and the environment. We seek to be among the lowest cost operators in the industry and to do so while maintaining financial discipline.

Where is contango oil and gas located?

Contango is a Houston, Texas based, independent oil and natural gas company.

Is Contango Oil and Gas a buy?

Contango Oil & Gas has received a consensus rating of Hold. The company's average rating score is 2.00, and is based on no buy ratings, 1 hold rating, and no sell ratings.

Will energy contango?

These assets transferred to Contango effective July 1, 2019. ... Effective immediately, all invoices and JIB matters for any previous Will Energy properties must now be directed to Contango Resources, Inc.

Is contango bullish or bearish?

Contango is thus a bullish indicator, showing that the market expects the price of the futures contract to increase steadily into the future.

Contango Oil & Gas Financial Stock Review: Huge Merger with Independence Energy: $MCF

37 related questions found

Why is there contango in Bitcoin futures?

This is somewhat unusual because in “normal” futures markets it's the reverse situation—referred to as “contango.” Contango exists in most markets because it's expected that over time prices increase (ostensibly due to inflation and other market factors).

Why is contango bad?

The most significant disadvantage of contango comes from automatically rolling forward contracts, which is a common strategy for commodity ETFs. Investors who buy commodity contracts when markets are in contango tend to lose some money when the futures contracts expire higher than the spot price.

What is contango and backwardation?

Contango and backwardation are terms used to define the structure of the forward curve. When a market is in contango, the forward price of a futures contract is higher than the spot price. Conversely, when a market is in backwardation, the forward price of the futures contract is lower than the spot price.

Where does the word contango come from?

Origin of term

The term originated in 19th century England and is believed to be a corruption of "continuation", "continue" or "contingent". In the past on the London Stock Exchange, contango was a fee paid by a buyer to a seller when the buyer wished to defer settlement of the trade they had agreed.

What is oil contango?

A contango market occurs when prompt crude oil prices fall below those further out in the future. ... Contango is normal for a non-perishable commodity, like crude oil and products, which have a cost of carry. Such costs include storage fees and interest forgone on money that is tied up in inventory.

Why is gold always in contango?

Generally speaking, contango is a normal situation for durable and easily storable commodities which have a cost of carry, such as gold. This is due to the carry costs - higher futures price is a way of paying for these costs. Indeed, gold spends most of the time in contango.

What is normal contango?

The relationship between the futures price of an asset being greater than the expected spot price of the asset on the delivery date of the contract.

Is oil a contango?

It remains in contango, with the spread at minus $9 a tonne. Despite the current weakness, the spread is still far above the level of minus $92 a tonne in April 2020, when many countries entered a first round of lockdowns, and oil sellers struggled to find buyers with storage tanks brimming full.

Which is normal contango or backwardation?

Contango is when the futures price is above the expected future spot price. ... Normal backwardation is when the futures price is below the expected future spot price. A normal backwardation market is often confused with an inverted futures curve.

How do you profit from backwardation?

In order to profit from backwardation, traders would need to buy a futures contract on gold that trades below the expected spot price and make a profit as the futures price converges with the spot price over time.

Is backwardation good or bad?

As a rule of thumb, if you're investing in commodities ETFs, backwardation is good and contango is bad. Investors can never be certain which way the market will go. Some futures, like pigs, wheat and natural gas are almost always in contango. Others, such as soybeans and gasoline, are often in backwardation.

How do you deal with contango?

Consider your trading strategy. One way to trade contango is to go short or sell at spot price and then go long or buy a further out contract. This can lock in a higher sell price and a lower buy price.

Does Uvxy decay?

Due to the roll and contango effects in futures, over time the price of UVXY will decay. This means it is ill-suited to a long-term buy and hold strategy and is instead suited to very short-term bets on price volatility. Traders can also take the opposite of UVXY, which is the SVXY.

Why there is difference between spot price and future price?

The main difference between spot and futures prices is that spot prices are for immediate buying and selling, while futures contracts delay payment and delivery to predetermined future dates. ... In either situation, the futures price is expected to eventually converge with the current market price.

What will bitcoin be worth in 2030?

"We're standing in the midst of the institutionalization of bitcoin," said Arcane Crypto analyst Vetle Lunde who forecast a $120,000 bitcoin price by the end of 2021 and thinks bitcoin will be worth $300,000 at the end of 2025 and $500,000 in 2030.

Is bitcoin a contango?

Bitcoin is trading in contango. ... This means that anyone can buy bitcoin and use that bitcoin as collateral to sell the June futures contract. This trade locks in a risk-free 6 percent USD-denominated return (more than 25 percent annualized) no matter where the price of bitcoin goes over the following months.

Why does backwardation happen?

Backwardation can occur as a result of a higher demand for an asset currently than the contracts maturing in the coming months through the futures market. Traders use backwardation to make a profit by selling short at the current price and buying at the lower futures price.

What is contango spread?

A contango is a situation where the futures price of a commodity is higher than the spot price. Another way for traders to profit off a contango market is to place a spread trade.

What is the spot price of a future?

The spot price is the current market price at which an asset is bought or sold for immediate payment and delivery. It is differentiated from the forward price or the futures price, which are prices at which an asset can be bought or sold for delivery in the future.

Why is roll yield positive in backwardation?

Roll yield is positive when a futures market is in backwardation, which occurs when a futures contract trades at a higher price as it approaches expiration, compared to when the contract is further away from expiration.