Curde oil has always been a highly volatile asset class. This makes trading it particularly attractive to risk affine market participants.

In the wake of the Corona crisis, plunging demand quickly sent oil prices to their lowest level since 2003 and the market seems set for a rebound. However, it is as easy as dangerous to underestimate the enormous cost of carry involved in holding positions in physical oil.

We think that there are better ways to play a rebound crude.