Interesting and Humour - page 4676

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Hello all, oil light is a bit down today))))

Now the S&P 500 and the Gold will follow

 
Vasiliy Vilkov:

Hello all, oil light is a bit down today))))

The S&P 500 and the Gold will follow.

WTI crude fell to $0, but immediately rose to $0.35 a barrel.

The price of the nearest Brent crude futures fell 99.98% to $00.00 a barrel as of 20:56 Moscow time. This is evidenced by the trading data on the London Stock Exchange ICE.



I think that's a bleep.

 
Igor Makanu:

a joke as a joke or a challange nowadays they call it

I do not understand. Was it a coincidence that the colour defines gender identity or is it a standard uniform at the nuclear power plant?

their choreography is so stunted that it seems they haven't eaten for a long time ))))

 
Igor Makanu:

WTI crude fell to $0, but instantly rose to $0.35 a barrel

The price of the nearest Brent crude futures fell 99.98% to $00.00 a barrel as of 20:56 Moscow time. This is evidenced by the trading data on the London Stock Exchange ICE.



I think this is bleeping.

Most of today's news headlines are about the epic collapse in oil prices, but in reality only the nearest futures have fallen sharply in price. It is expiring tomorrow and its collapse is due to the fact that no one wants to deliver physical oil as there is nowhere to store it. At the same time, the performance of the December WTI futures is not as impressive. It is still above March lows, although the upward correction seems to be nearing its end. Meanwhile, the June crude futures are currently trading around $22.63 and the July delivery futures are around $27.90/bbl.


Anyway, it's just that the futures closest to expiry are down a lot.

future futures didn't fall that much.

 
transcendreamer:

Most of today's news headlines are about the epic collapse in oil prices, but in reality only the nearest futures have fallen sharply in price. It is expiring tomorrow and its collapse is due to the fact that no one wants to deliver physical oil because there is nowhere to store it. At the same time, the performance of the December WTI futures is not as impressive. It is still above March lows, although the upward correction seems to be nearing its end. Meanwhile, the June crude futures are currently trading around $22.63 and the July delivery futures are around $27.90/bbl.


Anyway, it's just that the futures closest to expiry are down a lot.

future futures didn't crash like that.

It's no coincidence that this news is in humour).

But the jokes are pretty serious.

 
transcendreamer:

Most of today's news headlines are about the epic collapse in oil prices, but in reality only the nearest futures have fallen sharply in price. It is expiring tomorrow and its collapse is due to the fact that no one wants to deliver physical oil because there is nowhere to store it. At the same time, the performance of the December WTI futures is not as impressive. It is still above March lows, although the upward correction seems to be nearing its end. Meanwhile, the June crude futures are currently trading around $22.63 and the July delivery futures are around $27.90/bbl.


Anyway, it's just that the futures closest to expiry are down a lot.

Future futures didn't crash like that.

What do you mean, "nobody wants delivery of real oil"? A futures contract is a legal document in which one party agrees to buy an agreed volume of a commodity at a fixed time and at a fixed price, and the other party is obliged to sell and deliver it. Notions of "want/don't want" are irrelevant here.
It is not the price of oil that collapsed but speculators' expectations expressed in numbers.

Expectations are traded on the exchange, not real futures contracts.

Even in theory, it is impossible to trade a real futures contract, because the contract is written by the legal entities who enter into the contract. It makes no sense to register the futures contract with the bearer, because the liability of the parties to each other will disappear. So, the question is - what do they trade at the stock exchange? )))

It turns out that the futures contract at the stock exchange is an electronic right to wager on the course and direction of the forecasts of other speculators.
 
We need to bring down gold too. That would be great.
 
onedollarusd:
We should also collapse gold. That would be great.

And if you collapse the dollar, the price of oil in dollars will go up.

The dollar has become so expensive that the price of oil has fallen to zero)))

We should print more dollars. After all, it's expensive. More, more.

 
Реter Konow:
What do you mean, "nobody wants delivery of real oil"? A futures contract is a legal document in which one party agrees to buy an agreed volume of a commodity at a fixed time and at a fixed price, and the other party is obliged to sell and deliver it. Notions of "want/don't want" are irrelevant here.
It is not the price of oil that has collapsed, but speculators' expectations expressed in numbers.

Expectations are traded on the exchange, not real futures contracts.

Even in theory, it is impossible to trade a real futures contract because the contract spells out the legal entities that enter into the contract. It makes no sense to register the futures contract with the bearer, because the liability of the parties to each other will disappear. So, the question is - what do they trade at the stock exchange? )))

It turns out that the futures contract on the stock exchange is an electronic right to wager on the course and direction of the forecasts of other speculators.

Do not forget the speculators. They do not need the delivery of the commodity. Therefore, they will close their positions without waiting for an expiration. In the case of the next contract for WTI, it turned out that a large speculator or a group of speculators sitting in a losing long until the last and on the last day began to withdraw. If they sit tight until the expiration, then they are obliged to accept the oil and provide storage capacity. And then there are additional costs in the form of storage fees.

 
Vitalii Ananev:

Don't forget the speculators. They do not need the delivery of the commodity. So they close their positions without waiting for an expiration. In the case of the nearby WTI contract, it turned out that a large speculator or a group of speculators sat in loss-making longs until the very last and on the last day began to exit their positions. If they sit tight until the expiration, then they are obliged to accept the oil and provide storage capacity. And then there are additional costs in the form of storage fees.

You see, an electronic exchange-traded futures does not imply any delivery at expiration. That's a mistake. I inquired with my broker and the terminal itself (TWS) informed me that open futures positions at the time of expiration would automatically close at the market price. That's it - that's the end of the matter. No deliveries.
The essence of an exchange-traded "futures contract" is radically different from a real futures contract, and the same name causes wild confusion.
The version you describe is technically correct - buyers have closed long positions en masse by collapsing the price (think about to whom they have abruptly sold all their contracts when there are no other buyers anymore). But the rest of the interpretation is wrong. No physical delivery threatened anyone.

Apparently, the buyers sold their contracts to the sellers with whom they made the deal. That is, they bought first, then went into deficit and sold to the same people they bought from before. So the buyers lost money and their counterparties in the deal - the sellers - made money. It all makes sense. Only, how did it all work out at the same time? It's a mystery))
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