I posted this on r/oil but wasn't allowed to crosspost. I'd like to hear thoughts on it, though.
I have never traded futures, so correct me if I'm wrong please.
WTI settlement is 21/04 (21 april), Brent 30/04.
I have read the market manipulators will rollover the futures to combat the price spike.
But won't that require an actual future trade to happen? You have to sell the future to someone, and that someone will end up with a futures expiring and oil not being delivered.
So how can that combat a price spike? By money printers paying less, and just eating the cost to fake stability?
But then who is issuing the futures or whatever the term – if refineries are actively losing money selling at lower prices than what they have to pay for physical oil, why would they sell futures for their products at a loss? Can't they price their futures higher?
And if their products suddenly spike in price, why wouldn't the resources follow suit?
On a side note, there have been protests in Ireland because fuel is spiking significantly.
Posted by akrylowy