- Joined
- Apr 10, 2014
- Messages
- 470
- Reaction score
- 548
- Location
- Virgo Supercluster
- VCDS Serial number
- C?ID=126524
Oil as in turn gas prices are likely to go back up soon. Last I heard the Russians and OPEC are agreeing to slash production.
World-wide demand is down 30%. I have yet to hear of a deal that reduces world-wide production by anywhere near 30%.Oil as in turn gas prices are likely to go back up soon. Last I heard the Russians and OPEC are agreeing to slash production.
Lunchtime TV news in the UK said demand is 30% down but production (even after the agreement last week to cut production) is only 10% down.World-wide demand is down 30%. I have yet to hear of a deal that reduces world-wide production by anywhere near 30%.
Oil as in turn gas prices are likely to go back up soon. Last I heard the Russians and OPEC are agreeing to slash production.
Lunchtime TV news in the UK said demand is 30% down but production (even after the agreement last week to cut production) is only 10% down.
So the problem of nowhere to store the 20% excess oil coming out of the ground isn't going to go away anytime soon.
Lunchtime TV news in the UK said demand is 30% down but production (even after the agreement last week to cut production) is only 10% down.
So the problem of nowhere to store the 20% excess oil coming out of the ground isn't going to go away anytime soon.
Yeah well often not informed morons begin trading commodities options and at expiration fail to realize they must take delivery of the actual product as part of the "OPTION"!
Several Interactive Brokers LLC (“IBLLC”) customers held long positions in these CME and ICE Europe contracts, and as a result they incurred losses in excess of the equity in their accounts. IBLLC has fulfilled the firm’s required variation margin settlements with the respective clearinghouses on behalf of its customers. As a result, the Company has recognized an aggregate provisionary loss of approximately $88 million.
The US WTI futures contracts that went negative the other day have pretty specific delivery requirements.Jack: it really depends on the type of option as to what happens at the expiration date. But, it's probably more accurate to say that contract holder generally must take the actual product, rather than interpose the word "delivery" because that suggests that the commodity in the financial instrument needs to be physically transported if/when the option is exercised. As we both know, one of the many benefits of futures instruments is for swaps to happen at various physical delivery points in the market - this sometimes obviates the need for transportation under the contract.
Delivery shall be made free-on-board ("F.O.B.") at any pipeline or storage facility in Cushing, Oklahoma with pipeline access to Enterprise, Cushing storage or Enbridge, Cushing storage. Delivery shall be made in accordance with all applicable Federal executive orders and all applicable Federal, State and local laws and regulations.
At buyer's option, delivery shall be made by any of the following methods: (1) by interfacility transfer ("pumpover") into a designated pipeline or storage facility with access to seller's incoming pipeline or storage facility; (2) by in-line (or in-system) transfer, or book-out of title to the buyer; or (3) if the seller agrees to such transfer and if the facility used by the seller allows for such transfer, without physical movement of product, by in-tank transfer of title to the buyer.
(A) Delivery shall take place no earlier than the first calendar day of the delivery month and no later than the last calendar day of the delivery month.
(B) It is the short's obligation to ensure that its crude oil receipts, including each specific foreign crude oil stream, if applicable, are available to begin flowing ratably in Cushing, Oklahoma by the first day of the delivery month, in accord with generally accepted pipeline scheduling practices.
(C) Transfer of title-The seller shall give the buyer pipeline ticket, any other quantitative certificates and all appropriate documents upon receipt of payment.
The seller shall provide preliminary confirmation of title transfer at the time of delivery by telex or other appropriate form of documentation.
Cushing Oklahoma is not so much a production point, as giant nexus of oil pipelines, handily co-located with large amounts of tank storage (something like 90 million barrels worth!). Take a look at it with Google Satellite view.I suspect that WTI futures solved this same dilemma by ignoring the problem entirely (i.e. by defining the commodity price at a specific point in Payne County, Oklahoma - which I understand is at an oil production point)
Yes, a number of states have locked themselves into economic prisons, particularly with respect to public employee pension plans. I believe Illinois is at the top of the list, and California isn't far behind. Now they cry poor and want a bailout from the FedGov, i.e. the rest of us who live in states that have been more fiscally responsible.Economic prison ....