CFTC has reminded the markets that June WTI contract will expire on Tuesday, 19 May as oil price may turn negative again.
14 May, 2020, | AtoZ Markets – The Commodity Futures Trading Commission (CFTC) has issued a warning reminding the markets that the June West Texas Intermediate (WTI) contract will expire next week on 19 May. It likely could cause another price falling.
CFTC’s warning comes after the May contract for WTI crude oil made history on 20 April, with prices falling below zero and settling in negative territory. The holders of long positions rushed to leave the market, for lack of storage space available to deliver the crude one day before the expiration of the contract.
CFTC has also warned exchanges, brokers and clearinghouses that “they must be prepared that some contracts possibility continue to experience extreme market volatility, low liquidity and possibly negative pricing “.
The commission also stated that the notice was not intended to suggest that particular markets or contracts will experience fundamental or technical issues.
Think we have missed something? Let us know in the comment section below.