Oil plunges below zero for first time with May contract ending

Re:Oil plunges below zero for first time with May contract e... by frankchn on Monday April 20, 2020 @12:04PM (#22925141)

That’s true but not really relevant here. if traders are holding on to any open contracts for May past tomorrow, then I believe they will have to take physical delivery.

Thus, traders who still have contracts open but cannot take physical delivery will have to close their positions out today or tomorrow, thus causing the dip we are seeing.

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Re:Oil plunges below zero for first time with May contract e... by pas on Monday April 20, 2020 @02:30PM (#22926818)

Are there market makers for those contracts? (So can they sell them at all?)

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Re:Oil plunges below zero for first time with May contract e... by mlrtime on Monday April 20, 2020 @04:44PM (#22928312)

Of course there are market makers, but they aren't going to buy contracts if they can't deliver.

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Re:Oil plunges below zero for first time with May contract e... by pas on Tuesday April 21, 2020 @08:44AM (#22934417)

Okay, but isn't the point of designated market makers to always provide liquidity?

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