CFTC warns market to be ready for negative oil return

By Ross Lancaster
14 May 2020

As the June West Texas Intermediate crude oil futures contract’s expiry nears, the US Commodity and Futures Trading Commission has warned trading venues, clearinghouses and futures commission merchants that negative commodities futures prices could return.

Negative oil prices came as a shock in April, when the CME Group’s Nymex WTI Crude May contract fell below zero.

Since then, attention has turned to the June contract. Analysts expect a lack of storage capacity in Cushing, Oklahoma, to keep the pressure on until July.

During ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial