Oil fund’s forced sales send WTI prices plunging again: Kemp - Reuters:
Front-month U.S. light crude oil futures prices slumped almost 25% yesterday, the second sharp tumble in a week, after the exchange operator ordered a major commodity fund to sell some of its near-dated futures contracts.
United States Oil Fund (USO) announced to investors it would roll its current positions forward over three days between Monday and Wednesday after intervention by the Chicago Mercantile Exchange (CME).
USO positions were previously split between contracts for delivery in June (20%), July (40%), August (20%) and September (20%), after the fund had already been forced to shift them out of the front-month by recent volatility.
The fund is now shifting its positions even further forward, exiting the June contract altogether, and moving positions to July (30%), August (15%), September (15%), October (15%), December (15%) and June 2021 (10%).
No comments:
Post a Comment