CFTC warns Oil can turn Negative again!

[Primal Trader]

Well at least this time an early warning is going out from somewhere that might get some attention!

Brokers “should prepare for the potential that certain contracts may experience significant price volatility and, possibly, negative pricing,” the CFTC said.

https://madhousenews.com/2020/05/cftc-warns-traders-oil-prices-can-turn-negative-again/

 

[Scataphagos]

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?

 

[Nobert]

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

 

[xandman]

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?

Scat, are you saying trader's positions in the June month were re-assigned systematically to July? WTH!

 

[Scataphagos]

Scat, are you saying trader's positions in the June month were re-assigned systematically to July? WTH!

If "re-assigned systematically" means "rolled", then that's what I read... Had never heard of such a thing before.

 

[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.

 

[ZBZB]

Scat, are you saying trader's positions in the June month were re-assigned systematically to July? WTH!

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.

 

[Atikon]

Well at least this time an early warning is going out from somewhere that might get some attention!

Brokers “should prepare for the potential that certain contracts may experience significant price volatility and, possibly, negative pricing,” the CFTC said.

https://madhousenews.com/2020/05/cftc-warns-traders-oil-prices-can-turn-negative-again/

Goldman warned in March that Oil could go negative

 

[KISS]

futures exhange is BUCKET shop..how 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.

 

[SunTrader]

futures exhange is BUCKET shop..how 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.

You best not trade then. Or be near sharp objects.