FUTURES Playing U.S. oil contracts

Press, 24 April 1986, Page 27

FUTURES Playing U.S. oil contracts

. New Zealanders are playing American futures markets in oil options. Mr Doug Beeching, of the Auckland broker, Buttle and Company, which specialises in international trading, said three contracts were offered on oil: crude heating, and gasoline. The speculator needs to put up SNZSOOO per contract, which covers the deposit and initial margins. (This means the speculator should probably have about $lO,OOO of rish cash per contract). At present, the outlook for crude contracts was “sideways,” that for heating oil was weak, but the prospects for gasoline futures looked more promising. Mr Beecham lists among the reasons for the bullishness in gasoline options the low inflation in America, low energy prices, and the fact that as many as six million American tourists who usually go overseas are expected to holiday in their own country — and travel — this northern summer. Futures options, which can limit risk upwards and downwards, are not yet offered on the three oil contracts. Buttle and Company mans its trading room through the night to monitor the American markets. It uses a Reuters economic monitor for information, but is linking with a new futures information service from an American on-line database.

On the New Zealand futures market, the Government stock contract was hammered yesterday falling about 50 points. However, Mr George Price, futures broker with Egden Wignail and Company, says he feels the contract is “now a buy.” The fall was something of a technical corrections. Wool contracts were weaker again, and PCPs looked vulnerable they could test lo wer prices. U.S. dollar contracts were weaker again yesterday with the stronger New Zealand dollara. The June contract closed 70 points (SNZ3SO) down on the Tuesday close. Details of yesterday’s trading: SUS CONTRACTS Mth Open H/L Last Vol May 1.7650 .7650/570 .7630 9 Jun 1.7800 .7800/800 .7800 1 Contracts traded: 10. Open positions at Apr 22: May 317, Jun 8, Jul 3, Aug 2, Sep 3, total 333 (up 22).

Open positions at April 22: May 161, Aug 161, Oct 186, Dec 194, Jan 212, Mar 268, May 248, Aug 127, Oct 46, total 16,303, (down 50).

COMMERCIAL BILLS Mth Open H/L Last Vol May 7960 985/950 980 149 Jun 8080 090/070 070 75 Jul 8100 100/100 100 8 Sep 8120 120/120 120 3 Dec 8120 120/120 120 5 Contracts traded: 240. Open positions at April 22: May 663, Jun 344, Jul 10, Sep 126, Dec 64, Mar 35, total : 1242 (up 130). GOVERNMENT STOCK Mth Open H/L Last Vol May 8270 280/230 250 191 Jun 8275 280/250 265 41 Jul 8350 350/255 270 12 Contracts traded: 244. Open positions at April 22: May 342, Jun 216, Jul 1 , total 559 (down 31). WOOL FUTURES Mth Open H/L Last Vol May 489 489/488 488 3 Aug 510 510/510 510 8 Oct 516 516/516 516 1 Dec 518 518/517 517 3 Jan 518 518/518 518 2 Mar 523 523/522 522 2 May 525 526/525 526 2 Aug 539 539/539 539 2 Oct 539 541/539 541 2 Contracts traded: 25.