News for hackers. Stuff that matters.

A comment on Oil plunges below zero for first time with May contract ending. Parent comment

Re:Oil plunges below zero for first time with May contract e... by greenshackle2 on Monday April 20, 2020 @02:22PM (#22926736)
You still have to store the oil for a month. Which is expensive right now. Which is precisely why the May future is so cheap in the first place. I'm just rebutting that you will be stuck with the oil after June. Since they specifically said, they would sell a June contract immediately.
[ Parent | on HN ]
Re:Oil plunges below zero for first time with May contract e... by option_greek on Monday April 20, 2020 @02:55PM (#22927078)
It just implies that any profit made by arbitraging June contract with May by taking physical delivery doesn't cover the storage costs (which is hard to believe at $22 difference but that's what market seems to indicate).
[ Parent | on HN ]