CFTC warns Oil can turn Negative again!

Primal Trader said:
Brokers “should prepare for the potential that certain contracts may experience significant price volatility and, possibly, negative pricing,” the CFTC said.
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Negative oil futures, if J.R. Ewing was still alive he would have said "This no-good Cliff Barnes has done it again!", before dropping dead on the floor of his Southfork ranch :D

jr_ewing.la.jpg
 
hicondo said:
A good discussion on whether negative oil pricing should be allowed

https://www.risk.net/commodities/7648371/podcast-should-negative-oil-prices-be-allowed
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An ok podcast I guess, but I disagree where the one guy says the end-users (traders/speculators), could not be made aware of the negative pricing info in time to make a decision about being in the market. I have 3 e-mails, dated April 3rd, 5th and 8th, that warned it could happen.

The onus is on the trader to be sure they are signed up for communication from the CME about anything relevant to the product they are trading. I do agree thought with the points made that it made no sense for the CME to even allow this in the first place, at such short notice, and remove those down limits while not updating their product spec limit column until days after the event had passed.

That was BAD.
 
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