recommend futures broker for physical delivery

As it turns out storage is not full yet but fully leased.
Given current events anyone intending to go long and take delivery should already have a storage lease.
Wonder if O'Brien answer is due to those facts and if storage was plenty they would have answered otherwise.
Regarding convergence, ¿Closing price today should be the same as the spot market, right?
 
bone I got the auto-liquidated thing finally. :)
Taking delivery of CLK20 would have locked up a lot of capital as with yesterday -40$ move would have required $$$ to mantain margin even if you had locked up a carry trade.
 
mrtrousers said:
If anyone knows of a broker that will allow physical delivery let me know.
More...

I realize you are just making a shit post (or at least I hope you are) but taking delivery on grains where you receive a warehouse receipt / shipping certificate is very different from taking delivery on oil.

If you have the capacity to take delivery of oil, there are only a few clearing firms that will accommodate you. The main players are Macquarie, Societe Generale, JP Morgan, and Citi.
 
That's what I don't get, why couldn't I just get a receipt for a 1000 barrels in a tank in Cushing and pay for its insurance and storage?
 
Last edited:
mrtrousers said:
That's what I don't get, why couldn't I just get a receipt for a 1000 barrels in a tank in Enterprise or Enbridge and pay for its insurance and storage?
More...

Because that is not how the contract is designed. It would be like saying why can't you put diesel and a gasoline engine.
 
I'd like option 3, please. :)
Chapter 200 CME Rulebook:
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."

Guess is not like a piña colada though.
 
Last edited:
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.
 
Soc Gen, Goldman, BNP, and almost all of the world banks - but they are going to have multi-million dollar account minimums. Which is just a nice way of saying they don't want retail. The majors - who live in the cash markets have their own trading operations.
You can argue the details forever - unless you can live in the cash market forget about the physically settled.
The Small Exchange goes live Monday and they claim they will have a cash-settled oil composite. It's there SMGO contract. If anyone is connected on Monday I expect it would be TD and it's variants.
 
Last edited:
You must log in or register to reply here.
Back
Top