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godzillabrennus
on April 20, 2020
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US oil prices turn negative as demand dries up
No demand, surplus inventory already out there, so taking possession in May requires storing them indefinitely.
Investors decided to factor that cost in when buying these.
lubos
on April 21, 2020
[–]
You can close your position by buying the month after futures. This will require you to store crude oil for just one month. I think the issue is that storage facilities are almost booked out and the remaining capacity is just so expensive.
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Investors decided to factor that cost in when buying these.