Cross-month arbitrage is the spread of futures contracts of the same variety in different months. The monthly difference is related to the storage cost, inventory level and the expected change of supply and demand. The quarterly and monthly contracts of crude oil are more active, and the distant month generally chooses the quarterly month.
There are two kinds of monthly difference structures: futures premium and delivery delay fee. When the futures premium is extended to cover warehousing+capital cost, there will be risk-free arbitrage opportunities. You can use the old cruise ship to hoard oil (the storage fee is cheaper), and at the same time you can throw away the far-month futures to lock in profits. such as
Cross-market arbitrage, that is, arbitrage between WTI crude oil, Brent crude oil and Dubai crude oil, mainly affects the transportation situation, the difference between supply and demand in the two markets and the quality difference of delivery targets.
Crack the spread arbitrage, the spread between refined oil futures and crude oil futures in the same month. It is related to the demand for refined oil, refinery profits, operating rate and other factors.