so, i'm long crude oil from -$40
i'll get paid $40,000 per contract to take delivery...
30 contracts = $1.2 million
1000 barrels per contract = 30,000 barrels
42 gallons per barel = 1.26 million gallons
but i don't have a tanker truck fleet or barge to accept it.
can i just pour the oil into a ditch in the ground...or into the ocean?
serious questions
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I imagine the lawsuits will cost you significantly more than $1.2mm
pull a BP and dump it in the Gulf of Mexico lol
How can this be a serious topic?
never mind...i just covered at $16 made $24 * $1000 per contract (24k) * 30 = $720k
crazy fucking times woo hoo
for your firm or for yourself?
long soy beans
AMA pls
i made some calls trying to rent tanker trucks for the oil...but not only were there none available..but i was told i wouldn't be able to get the insurance needed to fill the tankers with crude oil...so i just closed my position at a profit. lucky perhaps
I saw this when you first posted it and thought it was a joke but if it wasnt was wondering what the hell you were gonna do with all the barrels lol. Glad to see it worked out for you after all.
This is legendary. Please tell me this is real if so you need to write up a post describing this!
Unrelated question: is storage at point of delivery the responsibility of the buyer or seller of the contract? So if I hold the short but my buyer is out of storage, what happens? Am I also in trouble?
I was wonder this too and i looked it up. it’s the buyers responsibility.
Yeah so lack of the ability to store means lack of a buyer means lack of demand and higher supply and lower price.
This would never happen. The day before settlement they contact both parties to make sure you're both actually good for delivery and receipt. Assuming you don't lie at that point to the exchange...
this is amazing. should be framed
[the US Coast Guard would like to know your location]
https://twitter.com/USCGLosAngeles/status/1253570343815442432
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