Search
Close this search box.

Home of the best experts

Derivatives, Investments & markets, News
By Gontran de Quillacq
On April 17, 2020

Why did the WTI futures have a negative price?

Why was the price of the oil futures negative? The explanation is simple - delivery.

The futures for immediate delivery of WTI oil has a negative price. Why?
-> If you are long, you HAVE to take delivery or roll the futures into Mays.
-> The roll is similarly expensive.
-> There is no storage left.
Some may end-up taking delivery of those barrels in their gardens…

Negative price of oil futures

 

Leave a Reply

Your email address will not be published. Required fields are marked *


News
We would like to express our heartfelt thanks to you, our clients, for your continued and growing business with us.We're also excited to share some...
Derivatives
Investments & markets
The CFTC just fined Goldman for failure to properly disclose prices fairly to clients. And it's all about a technical issue related to the timing of...
Investments & markets
News
Silicon Valley Bank (SVB) defaulted on Friday. At $212 bn of assets, it is the largest failure since 2008, and probably one of the fastest -...
News
The financial industry is a legal and compliance minefield for its million+ members. Through the Financial Professionals Coalition, Stephen Kohn, Bill Singer, and a talented group of...
Investments & markets
News
Xi Jinping's new leadership team will maintain the current direction. And China's GDP will slow; the Chinese economy is unlikely to reach that of the US...
News
Regulation, enforcement & litigation
Johnson & Johnson has spent billions on cases about one of its most popular products - talcum powder. As its executives try a brazen new legal...