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Oil price negative?


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Oil price negative?

  #101 (permalink)
 nikotron1124 
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Oil using businesses will start buying in anticipation of an economic turnaround. Crude Oil futures
clearly show this by looking at the contracts further out in time.

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  #102 (permalink)
 
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 SMCJB 
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kevinkdog View Post
OK, dumb question. Doesn't IB prevent clients from having positions a day or two before expiration? Every broker I have ever had (going back to Lind Waldock) has always told me over and over I had to be out by a certain date, before the last few days.

$88 million loss, assume $40K loss per contract means IB had over 2,000 contracts net long 1 day before expiration date. That seems like a lot.

Good point. Seems like a lot. IB does actually have a lot of hedge fund clients though. My broker (Advantage) requested close out trades only today for CLK0. First time I've ever seen that. Really don't know who is trading Crude on the last day for any month other than BP and people with storage capacity.

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  #103 (permalink)
 
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 TraderMich 
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Part of all of this is also the global trend to green solutions. This mean turning away from ail based products and to renewable energy source. E.g. in Denmark approx. 40+% of all electrical energy is created by wind turbines and the goal is to lower the co2 emission another 70% from this level. From 2030 all car making emission are banned (= i.e. with current technology only electrical cars with be allowed)

Denmark is a tine country, but many more will follow, and this is all pointing to lower oil demand, hence falling oil prices. On top of this the current Corona crises gives lower activity and it will take years for the world economy to recover from the Corona crises and during this time more technology has been invented that will reduce the demand for oil and coal for that matter.

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  #104 (permalink)
NotKenGriffin
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kevinkdog View Post
OK, dumb question. Doesn't IB prevent clients from having positions a day or two before expiration? Every broker I have ever had (going back to Lind Waldock) has always told me over and over I had to be out by a certain date, before the last few days.



$88 million loss, assume $40K loss per contract means IB had over 2,000 contracts net long 1 day before expiration date. That seems like a lot.



IB allows you to trade the minis right up to expiry because they are a financially settled product. Pererffy said IB had 15% of OI in the May contract on Monday (although unclear if that was QM@NYMEX + WTI@IPE or if that also included CL). The product expires a day before CL and settled at -$37 so anyone holding length really got killed.

Does anyone know of brokers that allow retail clients to trade right up until day of expiry? I’ve seen some surprising stories about retail clients owning this contract on Monday and Tuesday with no idea how to take delivery.


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  #105 (permalink)
 GFIs1 
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TraderMich View Post
Part of all of this is also the global trend to green solutions. This mean turning away from ail based products and to renewable energy source. E.g. in Denmark approx. 40+% of all electrical energy is created by wind turbines and the goal is to lower the co2 emission another 70% from this level. From 2030 all car making emission are banned (= i.e. with current technology only electrical cars with be allowed)

Denmark is a tine country, but many more will follow, and this is all pointing to lower oil demand, hence falling oil prices. On top of this the current Corona crises gives lower activity and it will take years for the world economy to recover from the Corona crises and during this time more technology has been invented that will reduce the demand for oil and coal for that matter.


Climate change is not first during this crisis... BUT

Denmark has a lighthouse project since years to avoid oil and carbon in the future. The EU has signed the Paris papers and should reach the goals which are not yet reached indeed.
So the flat oil price while flooding the markets makes all concerned inhabitants thinking about.
Here in Switzerland we need to protect the nature and are optimizing all to reach the Paris goals asap.
I am pushing several larger concepts with renaturing projects to reduce CO2 in the very near future. The good thing about the actual situation is that people are listening today more carefully what everyone can do himself to avoid buying unnecessary goods or making travels, instead doing digital work and conferences - Corona to thank for it! Keep going Denmark. And all others.
GFIs1

PS for traders: one has to look at the green industry - this one will get a huge junk of markets very very soon while "old time" sectors will fail.

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  #106 (permalink)
 
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 TraderMich 
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GFIs1 View Post

Climate change is not first during this crisis... BUT

Denmark has a lighthouse project since years to avoid oil and carbon in the future. The EU has signed the Paris papers and should reach the goals which are not yet reached indeed.
So the flat oil price while flooding the markets makes all concerned inhabitants thinking about.
Here in Switzerland we need to protect the nature and are optimizing all to reach the Paris goals asap.
I am pushing several larger concepts with renaturing projects to reduce CO2 in the very near future. The good thing about the actual situation is that people are listening today more carefully what everyone can do himself to avoid buying unnecessary goods or making travels, instead doing digital work and conferences - Corona to thank for it! Keep going Denmark. And all others.
GFIs1

PS for traders: one has to look at the green industry - this one will get a huge junk of markets very very soon while "old time" sectors will fail.

Yes I agree - The green energy businees will mean disrupsion to a lot of traditional business - TESLA is a great eksampel on how they have rethinked the car concept, this is not only that it is an electrical car but a lot more, and all the old car manufactures in Europe and US are figting to come to the TESLA level.

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  #107 (permalink)
 GFIs1 
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Short Interest POLL

This thread is about "Oil price negative?"

As the interest seems large for
• green energy projects
• CO2 down concepts
• investments and trading in/for above green industries and development
• collection of new articles in these fields
• etc.

To not get in conflict with off topic posts I suggest:

If you like the idea/theme and like to participate or being follower
then say yes by THANKING THIS POST


When ok'd
I will open a new thread in the traders hideout section with those important parts for the next future.

Saying thanks to you in advance
GFIs1

Thanks @Big Mike!

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  #108 (permalink)
OneTrdr
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NotKenGriffin View Post
IB allows you to trade the minis right up to expiry because they are a financially settled product. Pererffy said IB had 15% of OI in the May contract on Monday (although unclear if that was QM@NYMEX + WTI@IPE or if that also included CL). The product expires a day before CL and settled at -$37 so anyone holding length really got killed.

Does anyone know of brokers that allow retail clients to trade right up until day of expiry? I’ve seen some surprising stories about retail clients owning this contract on Monday and Tuesday with no idea how to take delivery.


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The oil contracts in question at IB are cash settled, such that IB allows clients to hold them through expiration like other cash settled contracts, for example ES.

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  #109 (permalink)
NotKenGriffin
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OneTrdr View Post
The oil contracts in question at IB are cash settled, such that IB allows clients to hold them through expiration like other cash settled contracts, for example ES.



I’m not sure if you are simply reiterating what I wrote in my first paragraph or attempting to answer my second paragraph. If it’s the latter, I’m not talking about IB and am referring to the physical contracts. The cash settled products for May expired on Monday and were obviously not tradable on Tuesday.


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  #110 (permalink)
 
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 SMCJB 
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GFIs1 View Post
Short Interest POLL

This thread is about "Oil price negative?"

As the interest seems large for
• green energy projects
• CO2 down concepts
• investments and trading in/for above green industries and development
• collection of new articles in these fields
• etc.

To not get in conflict with off topic posts I suggest:

If you like the idea/theme and like to participate or being follower
then say yes by THANKING THIS POST


When ok'd
I will open a new thread in the traders hideout section with those important parts for the next future.

Saying thanks to you in advance
GFIs1

Thanks @Big Mike!

@Big Mike I would like to report this post as flagrant attempt by @GFIs1 to elevate his 'Thanks' count.



*Most of you won't understand this, probably including @GFIs1 himself, because it references other conversations, but @Big Mike will!

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