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And while that was happening... this is what the May RB crack did. There was a bid at $31 even that didnt get filled. Towards the end, there was not even a market.
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals, U308 and Crypto.
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RB - Gasoline in NYH
CL - Crude OIl in Cushing Oklahoma
I'm sure RB vs Brent Crack was a lot more stable.
(East Coast refiners get their crude from the North Sea and West Africa and not OK.)
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals, U308 and Crypto.
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Been in the industry for a while. Good friends with several people who actually trade the physical barrel itself.
Correct. But the delivery doesn't come with it's own storage. You have to have the storage yourself in order to take delivery. In reality the buyer and seller both probably both have storage and all that happens is an intank paper transfer from one owner to the next.
Well, May Brent isnt even trading to compare so all of the May action was limited to US products. I know penultimate expiry and the urgency in WTI but still I find it really bizzare that May/Jun WTI does what it does but May/Jun RB and HO barely move. And, the other side of the equation gets satisfied by the move in cracks.
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I think it's purely because RB and HO are both New York Harbor, I'll see if I can dig up some Platts or Argus quotes but I'm sure Mogas and Heat in the center of the COUNTRY are trading at significant discounts to the screen.
They are. In the chicago area, a few days ago, gasoline was as low as 15-20 cents/gallon, almost 40c under the screen. I understand that. I was just commenting on how, sometimes the screen can do very bizzare things. Please dont spend your time looking up anything. I was just thinking out loud when I wrote that.
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals, U308 and Crypto.
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This was sent to me. Can not verify authenticity (google search does not find story) but trust source.
U.S. Oil Fund to Sell 4 Billion New Shares: Filing
By Alex Longley
(Bloomberg) -- U.S. Oil Fund ETF plans to sell 4 billion new shares, according to an exchange filing. Proposed sale as soon as practicable after registration statement becomes effective In a separate filing, USO says if it has to temporarily suspend the issuance of creation baskets, it will issue a subsequent report If USO issues all of its currently remaining registered shares before registration statement regarding additional, new shares is declared effective, management would have to suspend the ability of the firms - authorized purchasers - to buy new creation baskets
The exchange-traded fund, which normally holds WTI futures for the nearest month, will now move 20% of its contracts to the second-traded month, as an unprecedented global supply glut pushes down prices for contracts near their delivery dates. The change takes effect Friday and will be in place until further notice, it said in a filing with the U.S. Securities and Exchange Commission.
the company faces a significant shortfall between the oil stocks it held and the inventories pledged to its banks.
...
But Hin Leong told its creditors this month that total liabilities reached US$4.05 billion as of early April, while assets were just US$714 million, leaving a hole of at least US$3.34 billion,