by Craig Hemke
After watching front month NYMEX crude oil futures collapse into negative pricing on Monday, you should be sure to consider the possibility of an exact opposite scenario playing out one day soon in COMEX gold futures.
What happened Monday in NYMEX crude oil? It can be summarized this way:
- The May20 crude oil contract was scheduled to go off the board and into delivery on Tuesday, April 21.
- Anyone long the contract after Tuesday the 21st would be assumed to stand for delivery through the NYMEX facility in Cushing, Oklahoma.
- But storage facilities in Cushing are reported to be “full”. As such, there is no need or demand for holding these May20 contracts into delivery. Where would you put it?