Remember when oil went negative during covid, due to storage space literally running out?
What happens when supply that's already been sold literally can't be delivered?
Suppliers must close out their futures contracts with cash instead, at market value, all while genuine demand from sources actually needing delivery is increased.
There's a small chance we see the front month oil futures go parabolic at expiration due the physical impossibility of ~20% of the supply allocated actually getting delivered.
Please explain how I'm wrong and the world will be to replace the volume WITHIN the timeframe I'm talking about. The April /CL futures expire on March 20th and delivery happens through April.
Positions: 1 lonely /CLJ26 contract.