Last time I checked there was still a 30% oil storage capacity left, also if i'm buying oil that's already in storage the storage levels remain the same, the bottleneck is behind the refinery. And even if i could not use the info this time it be useful for next one, or for other products like gold. Regardless, got to say that the territory of negative prices is mindblowing.
"Delivery shall be made free-on-board ("F.O.B.") at any pipeline or storage facility in Cushing, Oklahoma with pipeline access to Enterprise, Cushing storage or Enbridge, Cushing storage. Delivery shall be made in accordance with all applicable Federal executive orders and all applicable Federal, State and local laws and regulations. At buyer's option, delivery shall be made by any of the following methods: (1) by interfacility transfer ("pumpover") into a designated pipeline or storage facility with access to seller's incoming pipeline or storage facility; (2) by in-line (or in-system) transfer, or book-out of title to the buyer; or (3) if the seller agrees to such transfer and if the facility used by the seller allows for such transfer, without physical movement of product, by in-tank transfer of title to the buyer."
It's like chasing a unicorn or looking for the pot o'gold at the end of the rainbow, really thought R.J.O'Brien would let me do it. Reckon, to make delivery, you either are a Clearing member or you got contacts to acquire the Oil in the spot market.
No. I would imagine that more than a few bottom picking retail types got auto-liquidated by their brokers today.
Well yeah, so far no broker I know lets you trade physical so they will all close your positions if you dont close them yourself before last trading day, also denying you the joys of convergence day lol. BTW I finally understood the issue is not storage now, it's storage in May.
These are absolutely great questions to ask. Could someone potentially drive a tanker truck to Cushing and take delivery by filling it up at the terminal? What about taking physical deliver of gold? Physical is probably better than paper anyway. Shuffling commodity paper around with no knowledge or possible escape route isn't prudent. I would like to know if it is possible or impossible for a motivated person and what the specific steps would be to make it happen. Maybe it is impossible. I couldn't find Commodity Delivery for Dummies on Amazon. Great thread mrtrousers!
I would think 40k payment goes a long way to find someone with oil cars or truck storrage for a month. Not like he need to get a barge or massive storage facility next to pipeline. But as mrtrousers said, need broker that allow physical deliver. Bummer.