Information WTI dates vs Financial DatesGood afternoon, I thought I would post the following for educational purposes for retail investors. Note today was the last day for May WTI contract settlement. This afternoon the front month moved to June.
Why is this important? Well when calculating an average WTI rate for a companies quarterly results you can NOT mix up contract and financial dates. You need to align them
For instance the WTI contract date you see on June 30th is NOT a Q2 price (rememeber commodities are a FUTURE price)
I track the contract prices by day and try to maintain a running chart feel free to look at my blog (I save the history)
Below you will see how the "Settlement dates" allign with the "Financial dates"
Hope this helps and please share with anyone if you feel it would help.
Note the Q1 average "settlement price" and the Q2 average "settlement price"
Also note the old saying sell in May and walk away...well for me there is NO chance I would personally sell knowing what Q2 looks like....compared to Q1...
I hope this helps
BSW, long and strong WCP through June 30, 2023
