4 ms·

Wasn't this a cash settled contract?

• whatok 6y ago
  No.
  • jdadj 6y ago
    It's not a cash settled contract. "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." Source: https://www.cmegroup.com/trading/energy/crude-oil/light-sweet-crude_contract_specifications.html https://www.cmegroup.com/trading/energy/crude-oil/light-swee...
  • mathgenius 6y ago
    It may have been ICE's crude contract, which is cash settled: https://www.theice.com/products/213/WTI-Crude-Futures https://www.theice.com/products/213/WTI-Crude-Futures "The West Texas Intermediate Light Sweet Crude Oil futures contract is cash settled against the prevailing market price for US light sweet crude."
    • whatok 6y ago
      Sure, but a majority of trading was done on CME futures. In either case, you still ran into the issue of negative prices. USO only recently started explicitly stating that they would also potentially invest in ICE futures alongside CME futures.
• mostlymeme 6y ago
  Yes