Teams
Forum List
Toggle sidebar

.

Getting awfully close. Grabbed this screen grab. Was interesting to go to a different tab and it was $7. Oh how time flies... It looks like the NYMEX chart is showing -$7.20 (moving quickly). I'm not sure how that works but it ain't good, that is obvious. Someone is getting destroyed.

upload_2020-4-20_13-21-56.png
 
Yes, OK this is NUTS. I'm not sure how this is possible but it has closed per CNBC. You could have been payed $35,000 to buy a contract.

WTI Crude (May)... -$35.20 DOWN $53.47 or 292.67%.

I think its fair to say this shouldn't even be possible. Something broke BADLY. Probably some ETF's.
 
ArgentCy said:
Yes, OK this is NUTS. I'm not sure how this is possible but it has closed per CNBC. You could have been payed $35,000 to buy a contract.

WTI Crude (May)... -$35.20 DOWN $53.47 or 292.67%.

I think its fair to say this shouldn't even be possible. Something broke BADLY. Probably some ETF's.
Click to expand...
Yeah not sure what happened. I mean storage shouldn’t be that big of an issue. Unless there are some massive environmental law issues that I’m unaware of.
 
This is crazy. You can refresh a page quoting the price and it drops $10/barrel. Glad I am largely clear of this other than a few fractions of ETFs and mutual funds that are in part impacted.
 
Urbandale2013 said:
Yeah not sure what happened. I mean storage shouldn’t be that big of an issue. Unless there are some massive environmental law issues that I’m unaware of.
Click to expand...

You could ship it in a truck (trucks I suppose), and keep the truck for storage, but then have to pay late fees for not returning the truck I suppose. Somewhere in there you would think you could arbitrage it Saul Goodman style and make some money.
 
CascadeClone said:
You could ship it in a truck (trucks I suppose), and keep the truck for storage, but then have to pay late fees for not returning the truck I suppose. Somewhere in there you would think you could arbitrage it Saul Goodman style and make some money.
Click to expand...
Yeah there has to be some way to kind of do some sort of makeshift storage.
 
Urbandale2013 said:
Yeah not sure what happened. I mean storage shouldn’t be that big of an issue. Unless there are some massive environmental law issues that I’m unaware of.
Click to expand...

If I had to guess it was just some Stink bid left in the system and some ETF like USO (wild guess) which have to roll contracts every month. Who knows. But I would be willing to figure out what to do with 1,000 barrels of oil for $35,000.
 
ArgentCy said:
If I had to guess it was just some Stink bid left in the system and some ETF like USO (wild guess) which have to roll contracts every month. Who knows. But I would be willing to figure out what to do with 1,000 barrels of oil for $35,000.
Click to expand...

I've been watching cnbc, and they talked about USO. They said that they roll their contracts a week or two before the last trading day.
 
I was wrong, they also just said that this contract expires Tomorrow at 1:30pm. So the fun may really just be starting...
 
Urbandale2013 said:
I thought they said it settled already.
Click to expand...

That is just what they call it everyday when they figure out what the "final" price is for each contract.

Also be very careful with the ETF's in this type of market. The earlier poster was correct when USO had rolled out 1-2 weeks ago. However, it still loses money on the contango (difference between the front month and the next) which in this case is HUGE (like $40 / barrel). So it will lose money every month, especially when the spreads are this big.
 
You must log in or register to reply here.

Help Support Us

Become a patron
Top Bottom