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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

 

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