Are low oil prices good or bad for oil traders? In theory oil traders should not care about the price of oil; as they have reminded us many times recently, the big trading companies trade differentials and spreads, not flat (outright) price. In a trader’s ideal world oil prices would fluctuate in a range, giving traders just enough volatility for risk-free plays on shipment dates and tonnages. On the plus side, low prices have reduced financing costs and capital requirements. The halving of the oil price since June 2014 means that for the same amount of money, trading companies can hold twice as much stock, something that comes in rather handy with the current contango in the oil market. So rather than being bullish or bearish on […]