Most of the oil traders are neither producers nor consumers (airlines, gas-powered electric utilities, etc). A few of these traders have experience in taking po

Most of the oil traders are neither producers nor consumers (airlines, gas-powered electric utilities, etc). A few of these traders have experience in taking possession. Whoever doesn't have experience in that will just pay premium (that is, negative prices) to rid of their contracts. June 2020 futures have been trading since 2018. Small oil producers, unlike Saudi and Russia, hedge their oil by selling calls or buying puts or a combination of them. Where does this end? Just transfer that negative premium to oil producers to NOT send the oil. However, this won't happen, as negative prices tend to happen on the last two days of the front month. Unless we see negative for July futures right now (in April), oil producers just follow their contracts.