CFTC warns Oil can turn Negative again!

Discussion in 'Commodity Futures' started by Primal Trader, May 13, 2020.

  1. Nobert likes this.
  2. The June contract was rolled by the exchange into July to prevent the possibility of negative prices again. Couldn't they just keep doing that until the supply/storage mess is resolved?
  3. Nobert


    Probably directed to those RH survivors, just to shake em out for good.
  4. xandman


    Scat, are you saying trader's positions in the June month were re-assigned systematically to July? WTH!
  5. If "re-assigned systematically" means "rolled", then that's what I read... Had never heard of such a thing before.
  6. KISS


    There is no shortage

    Shortage of storage was the official 'explanation' or excuse for negative pricing isn't it?

    You believe that 'fake news' right? They paid all the news outllets to report that BS to the general public.

    Any funny thing, you people think an individual investors will pay 1 million dollar in money he owes due to negative pricing.

    The algo malfuncion in the market wiped out someone account and says they make good by saying you don't owe 7 millions but you cannot get your $77,000 back either. People had their entire account wiped out. and it's like the exchange is being 'nice' by not asking for the 7 million the trader is suppose to 'owe'

    it's same as stealing 1 million and giving back $200,000, you still stole $200,000.

    the rule or tradition brokers have right auto liquidation so clients don't owe them money and broker never loses because of high margins.
    Last edited: May 13, 2020
  7. ZBZB


    The USO etn was told by the CME to roll early into July as they were 30% of the open interest. That is the dip in late April.
  8. Atikon


  9. KISS


    futures exhange is BUCKET can you have negative storage!!!
    only a tiny percentage or less than 95% of the contracts are settled by cash and they have no oil to deliver.

    there was no negative pricing in the 'real world' physical trading of oil.

    only in virtual reality was their negative pricing.
  10. SunTrader


    You best not trade then. Or be near sharp objects.
    #10     May 13, 2020
    bone, Atikon and Lou Friedman like this.