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edwmax · 04-20-2020, 07:33 PM

OK ... big change in the last 4 hrs. Earlier today I read the storage problem was related to the oil fields. But that's not exactly true. The oil fields can simple stop pumping oil. ... Because of the US stay-at-home orders oil/gasoline consumption has drastically decreased. Oil & gasoline storage's are full and May oil futures will close tomorrow (Tuesday) at which time the owners of those (futures) contracts will need to accept deliveries (in May) and PAY balance owed if not already paid. The negative price is an attempt to find buyers who can accept delivery & store oil. ... Otherwise some of these Future Traders may have oil the front lawn of their big estates. Not really tho ... but someone is losing their life saving or lunch money $$$$$.

OK ... Y'all just had a lesson in Commodity Trading of Futures. You don't wait to the last minute to sell your options.

04-20-2020, 07:33 PM	#78 (permalink)
edwmax Location: Cairo, Ga Find me on the map! Zone: 8b Join Date: Aug 2016 Posts: 2,891 BananaBucks : 115,407 Feedback: 0 / 0% Said "Thanks" 1,740 Times Was Thanked 4,437 Times in 2,093 Posts Said "Welcome to Bananas" 414 Times	Re: Rant of the Day.. OK ... big change in the last 4 hrs. Earlier today I read the storage problem was related to the oil fields. But that's not exactly true. The oil fields can simple stop pumping oil. ... Because of the US stay-at-home orders oil/gasoline consumption has drastically decreased. Oil & gasoline storage's are full and May oil futures will close tomorrow (Tuesday) at which time the owners of those (futures) contracts will need to accept deliveries (in May) and PAY balance owed if not already paid. The negative price is an attempt to find buyers who can accept delivery & store oil. ... Otherwise some of these Future Traders may have oil the front lawn of their big estates. Not really tho ... but someone is losing their life saving or lunch money $$$$$. OK ... Y'all just had a lesson in Commodity Trading of Futures. You don't wait to the last minute to sell your options. __________________ Last edited by edwmax : 04-20-2020 at 07:42 PM.