It's a futures contract between two parties. One has the
obligation to deliver crude (10k barrels I believe) and the other
has the obligation to accept delivery. if you don't have
anywhere to store it, you essentially pay someone else to take that
obligation (accepting delivery) off your hands. That's my
understanding at least.
How does WTIC have a
Posted by ssaffer on 20th of Apr 2020 at 02:44 pm
How does WTIC have a negative price?
It's a futures contract between
Posted by pep8261 on 20th of Apr 2020 at 03:10 pm
It's a futures contract between two parties. One has the obligation to deliver crude (10k barrels I believe) and the other has the obligation to accept delivery. if you don't have anywhere to store it, you essentially pay someone else to take that obligation (accepting delivery) off your hands. That's my understanding at least.
but obviously someone is getting
Posted by pep8261 on 20th of Apr 2020 at 03:11 pm
but obviously someone is getting squeezed
EDIT: 1,000 barrels (42,000 gallons)
Posted by pep8261 on 20th of Apr 2020 at 03:53 pm
EDIT: 1,000 barrels (42,000 gallons)
you have to pay a
Posted by tahoe on 20th of Apr 2020 at 02:49 pm
you have to pay a shipper to take it from you.