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ICE offers an equivalent cash settled contract, that takes it's value from CME's closing prices. https://www.theice.com/products/213/WTI-Crude-Futures https://
by mathgenius 6y ago
ICE offers an equivalent cash settled contract, that takes it's value from CME's closing prices.
https://www.theice.com/products/213/WTI-Crude-Futures https://www.theice.com/products/213/WTI-Crude-Futures
- defen 6y agoRight, but the reason it went negative is that there was no place to store the oil (demand for storage went through the roof because demand for actual oil plummeted). So that if you held one of these contracts, you had to pay someone to store your oil (directly or indirectly, if doing a cash-settled contract). If the people in the article did cash-settled contracts they would have been in just as much trouble.
- TuringNYC 6y agoCurious -- did they settle at a price where holders had to pay up on the below zero spot?