In any case, Trump said during yesterday's White House press conference that he was either going to buy those oil or rent the Strategic Oil Reserve storage out and there are 76 million barrels of storage space available (that means USG has been loading up on cheap oil since March 6). The US Government could make some money on this and help US oil producers.
Why is cheap oil prices negative to the economy
- Thread starter Amatrue
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Interactive Brokers Issues Statement on Crude Oil Contracts and Margin Loss
April 21, 2020 04:01 PM Eastern Daylight Time
GREENWICH, Conn.--(BUSINESS WIRE)--Interactive Brokers Group, Inc. (Nasdaq: IBKR) today noted that, as has been widely reported, the energy markets yesterday exhibited extraordinary price activity in the New York Mercantile Exchange (NYMEX) West Texas Intermediate Crude Oil contract. The price of the May 2020 contract dropped to an unprecedented negative price of $37.63. This price was the basis for determining the settlement price for cash-settled contracts traded on the CME Globex and also on a separate, expiring cash-settled futures contract listed on the Intercontinental Exchange Europe (“ICE Europe”).
Several Interactive Brokers LLC (“IBLLC”) customers held long positions in these CME and ICE Europe contracts, and as a result they incurred losses in excess of the equity in their accounts. IBLLC has fulfilled the firm’s required variation margin settlements with the respective clearinghouses on behalf of its customers. As a result, the Company has recognized an aggregate provisionary loss of approximately $88 million.
The Company does not believe that any anticipated losses will have a material effect on its financial condition.
April 21, 2020 04:01 PM Eastern Daylight Time
GREENWICH, Conn.--(BUSINESS WIRE)--Interactive Brokers Group, Inc. (Nasdaq: IBKR) today noted that, as has been widely reported, the energy markets yesterday exhibited extraordinary price activity in the New York Mercantile Exchange (NYMEX) West Texas Intermediate Crude Oil contract. The price of the May 2020 contract dropped to an unprecedented negative price of $37.63. This price was the basis for determining the settlement price for cash-settled contracts traded on the CME Globex and also on a separate, expiring cash-settled futures contract listed on the Intercontinental Exchange Europe (“ICE Europe”).
Several Interactive Brokers LLC (“IBLLC”) customers held long positions in these CME and ICE Europe contracts, and as a result they incurred losses in excess of the equity in their accounts. IBLLC has fulfilled the firm’s required variation margin settlements with the respective clearinghouses on behalf of its customers. As a result, the Company has recognized an aggregate provisionary loss of approximately $88 million.
The Company does not believe that any anticipated losses will have a material effect on its financial condition.
That is OK as long as US G makes some money for a change.
Nevertheless we should fill it up. Are there any other salt domes around we could fill?
Good thinking. There are a few around. Send Trump a Tweet.