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Oil price negative?


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Oil price negative?

  #151 (permalink)
 
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 SMCJB 
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@TraderMich LMAX CFDs?

spideysteve View Post
That’s crazy. Somehow reminds me of when Venezuela was going through a big currency crisis, so they introduced the “strong Bolivar” which was supposed to be .. stronger I guess. But really, that was just a shell game with rampant inflation.

It's actually quite common to do that. That's actually exactly how Eurodollars work (LIBOR initerest rate not EUR:USD) where the quoted futures prices is 100 minus the interest rate.

For everybody predicting the end of oil, CLZ30 settled $54 today. Could be a good sale?

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  #152 (permalink)
SunTrader
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TraderMich View Post
Just for clarification here. Oil (US Crude Oil Spot) has not traded negative, lowest value has been just below 10 USD (this time around) - It was "only" the future contracts that traded sub zero.

Just for clarification ... you do realize CL, which is what I posted, is the futures and not spot?

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  #153 (permalink)
SunTrader
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SMCJB View Post
@TraderMich LMAX CFDs?
It's actually quite common to do that. That's actually exactly how Eurodollars work (LIBOR initerest rate not EUR:USD) where the quoted futures prices is 100 minus the interest rate.

For everybody predicting the end of oil, CLZ30 settled $54 today. Could be a good sale?

$53.95 to be exact but there are a helluva lot of trading days make that trading years left till CLZ30 settles for good.

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  #154 (permalink)
NotKenGriffin
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TraderMich View Post
Recieved this from LMAX today - Plaese note this is regarding Oil Spot prices NOT future/dericiate pricing:

"Spot" oil prices are typically just calendar month averages of futures prices (with there also being a transport/grade differential for different physical markets). It looks like LMAX just uses a rolling average of the prompt two months for CL on NYMEX.

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  #155 (permalink)
SunTrader
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SMCJB View Post
@TraderMich, @SunTrader, @spideysteve, @GFIs1 any chance we can move the Green discussion to a more relevant thread? (Don't forget half of the US thinks Global warming is a liberal conspiracy)

Pathetic. CME/NYMEX have increased margins 3 times in 6 days. Let them do there hjob.

They are.

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  #156 (permalink)
 
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NotKenGriffin View Post
"Spot" oil prices are typically just calendar month averages of futures prices (with there also being a transport/grade differential for different physical markets). It looks like LMAX just uses a rolling average of the prompt two months for CL on NYMEX.

LMAX do not use any thing - LMAX works as an exchange i.e the pricing is based on bit and ask. - It is spot oil that is the basis - The Cl future and other crude oil futures are deriviate of spot oil not the other way around.

The same way ES future is a deriviate of the S&P 500 Index, so Es is following the index and not the other way around (In general!!!)

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  #157 (permalink)
 
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 TraderMich 
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SunTrader View Post
Just for clarification ... you do realize CL, which is what I posted, is the futures and not spot?

Yes exactly - That is what I am trying to say CL is not oil CL is an Oil Future and spot oil is the actual oil abd spot oil never went negative - so far

So when we are debating negaive oil prices that happen this week we need to be clear what we talk about - The oil future or the actual oil price.

Spot oil went down to approx 10 usd the Oil future went negative due to an long squeez

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  #158 (permalink)
NotKenGriffin
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TraderMich View Post
LMAX do not use any thing - LMAX works as an exchange i.e the pricing is based on bit and ask. - It is spot oil that is the basis - The Cl future and other crude oil futures are deriviate of spot oil not the other way around.

Nope. Oil is unique in that there is a dynamic feedback loop between the spot and the futures markets because of CMA pricing (at least in the US).

LMAX Guide for Spot Crude Oil: "The spot price for oil is derived from a weighted average between the 1st and 2nd month Future Contracts and follows the business day convention from New York."

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  #159 (permalink)
 
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TraderMich View Post
That is what I am trying to say CL is not oil CL is an Oil Future and spot oil is the actual oil abd spot oil never went negative

I didn't see it, so don't know, but are you saying that Argus's WTI Assessment on Monday was above $10 and that there was a $47 difference between the CL Settlement and the Argus Assessment?

And you keep saying Spot Oil. I assume you mean Spot WTI. There are dozens of different US crudes and several of them have traded below $10 and some negative already.

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  #160 (permalink)
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TraderMich View Post
Yes exactly - That is what I am trying to say CL is not oil CL is an Oil Future and spot oil is the actual oil abd spot oil never went negative - so far

So when we are debating negaive oil prices that happen this week we need to be clear what we talk about - The oil future or the actual oil price.

Spot oil went down to approx 10 usd the Oil future went negative due to an long squeez

I understand except you referenced my post about the futures to point out it was only the futures.

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