WARNING: Read me before buying OOO, page-408

The article mentions spot price which is inaccurate because its all about futures IMO.

Last night the June contract got to 6.

The May contract was -37 odd before finalising at 9 to 10. If this was a proper market based on actual demand and supply this cannot be intuitively. If you are a purchaser why would the price go from -37 to 10? I get you want the negative prices but it when from 1 to 10 where you can get June at similar time to have more time for transport and storage at similar prices at one point. The prices are not functioning properly because it is not a real market but a false market sending the wrong price signals the wrong time for buyers and sellers let alone traders.

The June contract should be lower because, as a purchaser, why buy now at all if you are chasing negative prices later in the month?? In fact the USO tried to spread their offload over three months to avoid such a movement yet to go through regulators.

Furthermore, if purchasers need time for storage why buy now? So June contract should be a lot lower if it reflected real demand IMO and WTI is more of a future speculative tool IMO that gets influenced by the derivative set-up. No one would we buying higher July contracts and Sept contracts either because the demand is not their apart from derivative demand that does not reflect actually physical demand which is what happened in the last two days because the derivative demand did not reflect the actual physical demand so prices where forced to the negative.

USO apparently run out of shares I heard on the media outlet overnight. Depending on which future contract this relates to the next time this happens, even if its a third, the pressure is still downward because this is derivative demand not physical demand and they want others to buy their oil because they can't purchase oil it let alone store it as derivative operators. Potential buyers though will not be able to store it either so the pressure will be downward again!!

One commentator said its possible WTI could go negative 100.