RIP
7 replies (most recent on top)
How much did front office sell today?
Does it help that we have hedges if there is no where to put the oil after it leaves the well?
If Oxy only waited a year to buy APC, they could have gotten it for free.
Everyone is trying to roll their contracts from May to June all at the same time. This is collapsing the market for May because there is no liquidity and no demand. The price June futures is being pushed up because of everyone trying to buy forward their contracts. But nobody will want to get stuck holding the bag on 5/20 like they are today, so there will be downward pressure on the June contract starting tonight.
@icv+14zEkIgm Thanks for that explanation, and I was reading and trying to figure it out. Your explanation confirmed what I was thinking after reading some articles. In those articles it did say the May closing being down so much might draw down the actual June price tomorrow.
The price being quoted is for the futures contract expiring in ~3 hours. Anyone buying rn will have to take physical delivery or incur storage costs. So these just long speculators unwinding for whatever cents they can get. Next month's futures are quoting a more respectable $25.
It is now at one penny