Questions tagged [crude-oil]
24 questions
109
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5 answers
What does it mean for the price of oil to be negative?
The New York Times website currently has this graph, showing that the price of "West Texas Intermediate, May contract" is $-13.10. Does it literally mean that someone's offering $13.10 to take a barrel of oil off their hands, or is it a quirk of…
Mark
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What are some possible reasons that a heating oil rep would be anticipating oil prices falling?
We are planning on prebuying heating oil this year to avoid high costs if the price rises over the winter.
We can buy now, or wait until fall. The person I spoke to over the phone said she would advise us to wait, because "we expect prices will go…
nuggethead
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Why would one choose to sell stock back to a company for less than their current market price?
Marathon Petroleum Corporation (MPC) is currently offering to buy back $4 billion USD of their stock (reference).
The minimum they will pay is $56, and the maximum is $63.
Given that this equity is currently trading at $63.61, why would someone want…
user109880
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Why do tech stocks seem to react to oil news?
I have seen this pattern a couple of times already and I'm uncertain if I'm seeing a non-existing pattern.
Today (2024-10-01, ~15:05 German local time) several major US stocks dropped:
Apple:
Microsoft:
Nvidia:
Amazon:
One part of the news: S&P…
Martin Thoma
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6
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3 answers
What ETF best tracks the price of gasoline, or else crude oil?
Is there an ETF that very closely tracks the price of gasoline? In lieu of that, which ETF best tracks the price of crude oil?
Jer
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4
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3 answers
What is the relation between the price of crude and the corresponding ETF
Currently the price of crude oil is hovering around 50$/barrel and the corresponding ETF like USO is around 20$/share.
What is the relationship between the price of crude and the price of USO?
For a commodity ETF like GLD, it is one tenth of the…
Victor123
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1 answer
Why did the price of crude oil drop below zero today?
Something that’s never happened in the oil market just occurred: negative prices on an oil contract.
Why did the price of crude contracts drop below zero today?
Can I invest in crude contracts through a traditional brokerage firm? Will I get paid…
Matthaeus Gaius Caesar
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3
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1 answer
What exactly is the spot market?
I understand for commodities such as crude oil, there is NYMEX exchange where futures contract are listed and traded. Where exactly do I find the spot market? How does it work? Where is the price quoted? Is crude oil traded on some spot market…
Xiaohuolong
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2
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Is there a way to buy raw oil today and sell it in 1 year time?
Is there a way to buy raw oil today and sell it in 1 year time?
I would like to do so from the United Kingdom.
EDIT: I mean buying shares of oil or whatever other form.. I just want to own it "virtually" as the price of oil is low now and I am sure…
mm24
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2
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Who creates oil futures?
Who creates futures such as CL.AUG20 (August WTI Crude Oil contract) sold on NYMEX which can be bought via eToro?
I understand that when a company wants to go public, they sell these stocks on an exchange such as NYMEX or other to which brokers…
Cantaff0rd
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2
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What are the implications for institutional traders left holding a long WTI contract at expiry, unable to take delivery?
Given the historic drop in the front month WTI price today, I was wondering what the ramifications are for those professional traders who are left holding a long position. Note this problem won't normally apply to retail traders, since their…
Bradley Thomas
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vote
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Why buy consumable commodities?
These two questions explain why gold is a useful commodity and what happens when someone buys it.
Where can I buy real gold and sell it later as shown in market?
What intrinsic, non-monetary value does gold have as a commodity?
I assume buying other…
Marcus
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vote
2 answers
What is the real cost for storing a barrel of crude oil at present?
The recent negative price of WTI crude oil futures contract indicates the receipt/storage of a barrel of crude oil can cost more than $37， which is unbelievable. Does anybody know the real cost at present, such as the rent fee of oil storage tanks?
William
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If I buy a crude oil futures contract at CME, must I sell the contract before the last trading day?
Does CME have different contracts for different traders, i.e., some traders must close their positions before the last trading day of their futures contracts while others can hold their position to receive real crude oil? If so and I'm the former…
William
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Crude Oil Futures Settlement
I am a bit confused about how futures contracts are settled. I know that usually contracts are either cash-settled or physically settled. For CME WTI crude oil futures contracts, how does settlement work? If I don't want to take physical delivery,…
Xiaohuolong
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