4 ms·
100% false. Where are these facts coming from? The specs for delivery are always very clear because price depends on where it needs to be delivered! "Delivery
by thoraway1010 7y ago
100% false. Where are these facts coming from?
The specs for delivery are always very clear because price depends on where it needs to be delivered!
"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."
What does it mean to be "normally not a destination for oil" and who is doing this checking (do you realize the volume of oil that is traded monthly? The futures market being discussed here uses standardized contracts.
- bluGill 7y agoNot everyone is allowed to trade, there are rules if you don't have ability to accept oil they make it hard to get a contract that doesn't sell automatically. (not impossible, but a mistake guns up their processes so they have procedures to avoid it)
- OrangeMango 7y agoAnd you get the entire month of may to take delivery. If you become an accidental owner of crude oil tomorrow, you still have time to arrange a solution with someone that can take it. Financially, it doesn't sound like a good situation to be in though.