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Your email address will not be published.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 *


Regulation, enforcement & litigation
Investments & markets
"The algorithm decided" is not a legal defense. Neither is "we didn't know the system had drifted." Courts are settling these questions fast — and the...
Derivatives
Investments & markets
Prediction markets have outgrown their reputation as election novelties. They are now structured like financial derivatives, regulated by the CFTC, and generating the same market-abuse problems...
Investments & markets
Regulation, enforcement & litigation
A 10% stock drop on a single post. Here is how it became a $2.6 billion verdict....
News
Pyrite Risk Experts is look for a senior full-stack developer to deploy some of its technology....
Investments & markets
Regulation, enforcement & litigation
Litigation risk, disclosure, and instrument-level analysis during global shocks...
Derivatives
Investments & markets
Valuation Compression, AI-Capex Issuance, Basel III Incentives, and Private Credit Interconnectedness in 2026...
Skip to content