Will the negative oil price of US crude oil WTI contract expire in June reappear?

category:Finance
 Will the negative oil price of US crude oil WTI contract expire in June reappear?


A month after the negative oil price, governments around the world are slowly lifting travel restrictions, with signs that crude oil demand is picking up from its lowest point.

At present, oil prices have rebounded to a certain extent, and the US crude oil price is close to $30 per barrel. Inventory pressures are easing as global crude producers cut production rapidly: data released by the US government last week showed crude inventories fell.

The number of open positions decreased in June

In order to control risks, the exchange and the exchange have taken a series of measures. The Chicago Mercantile Exchange, which hosts WTI futures trading, last week raised the maintenance margin of June futures contracts by 20%. This will make it more expensive for some smaller retail investors to hold large open positions before the contract expires. Since the collapse of oil prices, several brokers or futures brokers, including TD Ameritrade, have restricted customers from buying new positions in some crude oil contracts. About 75000 on Thursday. The price is down from nearly 135000 on Wednesday. On April 17, two days before the expiration of the may contract, there were about 108600 open positions.

Why negative oil prices?

Jinlianchuang analyst team told the Beijing news that the reason for the negative oil price was that the tight storage capacity caused the oil price to fall into a frenzy of capital squeeze. Novel coronavirus pneumonia is still in the blockade in most parts of the United States. The only potential buyer of crude oil is an entity that requires actual delivery. Such a refinery or airline needs to be delivered. However, after the continued weakness of the final demand in the past few weeks, the idle storage space of these large entities is in a very short supply, and therefore, there is a lack of further purchase of oil. Intention. In the context of the blockade, the market oil storage space has gradually approached the limit after the previous weeks of continuous accumulation, which led to a special situation that the transportation cost of transporting crude oil from the production site to the refinery or storage area has exceeded the commercial value of the oil itself in some markets in the United States. Therefore, in the event that WTIs spot may contract is about to be delivered after the closing on April 21, but there are a large number of open positions, in the transaction on April 20, the contract fell into a carnival of short positions.

Under the negative oil price, the gas station needs to change money?

Source: Daily Economic News Editor: Wang Xiaowu NF