USO Rollover Report for May, Sharp Drop in Contango

ROLLOVER MAY REPORT

USO rollover for May ended yesterday, Friday May 8 2009. This is what happened with USO and UCO during the rollover days:



There was only one down day. There was, of interest, one major intra-day drop with big volume.
We would conclude at this point that there were no major efefcts of rollover this time around.


CONTANGO

Also of interest is that there was a further reduction in the contango between June and October contracts. The difference is now $3.26, down sharply from $4 yesterday. Note how all future months had a drop in price, while the front month of June saw an increase in price.






ROLLOVER CALENDAR

Here is the rollover calendar:



For reference, we reproduce the April and May effects.

April effects:



March effects: