They’re not coming down yet. Everybody is just looking at the paper contracts, instead of looking at the actual price it sells for at this moment.
I wonder what happens when people start earning 50 dollars/barrel when they start actually delivering those contracts instead of rolling them over. Will probably even be worthwhile logistically. Some companies are going to have to pay the difference.
HumptyDumptruckFire on
I don’t know, aren’t there still enough people and businesses who *need* to fill their tank that supply-side issues would still be a greater concern than demand destruction at this point?
Genuinely asking. I’m not an economist but I always appreciate learning.
2 Comments
They’re not coming down yet. Everybody is just looking at the paper contracts, instead of looking at the actual price it sells for at this moment.
I wonder what happens when people start earning 50 dollars/barrel when they start actually delivering those contracts instead of rolling them over. Will probably even be worthwhile logistically. Some companies are going to have to pay the difference.
I don’t know, aren’t there still enough people and businesses who *need* to fill their tank that supply-side issues would still be a greater concern than demand destruction at this point?
Genuinely asking. I’m not an economist but I always appreciate learning.