Ederington, Louis H.; Fernando, Chitru S.; Holland, … - 2021
We study the dynamics of cash-and-carry arbitrage using the U.S. crude oil market. Sizable arbitrage-related inventory … factors explain most inventory changes. We add to the Theory of Storage literature by introducing two new features. First, due …. Second, storage capacity limits can impede cash-and-carry arbitrage, leading to the persistence of unexploited arbitrage …