21

This isn't the "oil price" that's going negative; it's the price of WTI Oil Futures contracts for May. WTI Futures contracts mean taking physical delivery in Cushing, Oklahoma (the hub of the US pipeline network). Many, many contracts was signed some time back, for the seller (at a future date, hence futures) to deliver X barrels of oil to Cushing and for ...


9

The oil spot price didn't go negative, this was future contract price. Basically the future contract expires at a certain date and they have to take delivery. The futures owners were dumping because the price of storage if they had to take delivery would have been very high, or even impossible. The people buying back the future contracts (at negative ...


5

News say it is because sellers cannot sell it. But, why don't they just hoard it until the coronavirus crisis is off? They can't because their oil storage facilities have a limited capacity. According to this German article from Spiegel Online, there is currently less demand for oil than there is production. Oil wells are pumping oil which they can not sell ...


5

The Brent price is for oil physically delivered in the UK. The price that went negative if for oil delivered in West Texas, US. The physical and economic conditions at the two places are different - volume available, flexibility of that volume, demand, storage, and so on. This leads to different prices.


4

Since nobody is answering this, I will point out that the answer is half there. The cornering attempt directly affected the silver price, but gold went along for the ride. People treated gold/silver as an asset class - “precious metals” - and they traded them on a relative basis (the gold/silver ratio). The rules were changed, and the Hunts were forced to ...


3

I am unsure about the American situation, but I learned a bit of history about token issuance in pre-Confederation Canada. These comments are based on the notes in a token collector guide. Since they were privately issued, they would be called “tokens” and not “coins,” as that was reserved for governmental issuance. In the Canadian colonies, there was a ...


2

"Why can't farmers simply sell their wheat ahead of time to buyers who are capable of storing this wheat..." "...sell their wheat ahead of time..." is precisely what a futures contract does. To imply that it is necessarily speculators on the other side is misleading. On a futures exchange, trading is anonymous and identity of counterparty is not known. ...


2

This negative price is caused by greedy countries. The usual worldwide oil demand is about 100 million barrels a day. Now, because of the Corona crisis, demand is about 30 percent down, so, ideally, the world oil production should be lowered with about 30 million barrels per day. So far, however, worldwide production only got 10 percent lower. The BIG ...


1

If you are looking for certain commodity data from the US. The USDA Economic Research Service has data on market size of certain commodities. But I am not sure about firm level data. https://www.ers.usda.gov/data-products/commodity-costs-and-returns/ There measures include cost and return estimates are reported for the United States and major ...


1

The cannot sell the wheat ahead of time since they cannot be sure what the yield on their crop will be. That is, they have no idea whether they can fulfil the contract. With the futures position, they can close it at a gain or loss that can be covered with cash, and it is independent of their crop yield.


1

There are various important social benefits of commodity trading even just on paper. The main ones are risk management, hedging, providing liquidity and secondary market, and price discovery. For example, both producers and customers of commodities can use future market to hedge risks of adverse price movement. For example, in market for potatoes the ...


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