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In other words, there was an oversupply and futures contracts couldn't be fulfilled. Partly due to Saudi and Russia having a disagreement over production cuts i
by krona 3y ago
In other words, there was an oversupply and futures contracts couldn't be fulfilled. Partly due to Saudi and Russia having a disagreement over production cuts in response to the massive demand shock.
- rcme 3y agoNo it was a demand shock that caused demand to plummet meaning storage facilities were still full as futures created before the demand shift expired. Basically people bought futures expecting to have capacity to take delivery but then realized they wouldn’t.