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A sequence of deals in which a forward cargo of crude oil is repeatedly traded before it is assigned a date to be loaded onto a tanker. Once loading dates have been assigned, these forward cargoes, also known as paper cargoes or paper barrels, are said to have become wet barrels. Paper cargoes are traded in daisy chains for speculative or hedging purposes. A daisy chain is also known as a paper chain. The term daisy chain is also used outside the oil market to refer to the process by which a group of traders trade amongst themselves to create the illusion of of an active market in which prices are rising to attract unsuspecting outside investors. Once the unsuspecting investors have bought at inflated prices the daisy chain traders vanish and prices fall.
See also: Brent, Dated Brent, Dubai Crude