Suncor Energy Inc T.SU

Futures Delivery?

[liljohnnyjoke]

if someone this morning bought 1000 units (1 unit = 1000bbls) of WTI $93 expOct23 does that mean they have to be ready with storage facilities to accept delivery of 1,000,000 bbls of oil in 12 days? and have a cheque for $93M ready?
or I am guessing that the hedge fund speculators that continuously drive the price up never take delivery, have a way out of the deal just before delivery?
I doubt China or India is buying oil at these prices, more likely $20-30BBl cheaper from the countries the US and the west have sanctions against.

[MigraineCall]

The crude paper market is 30 times as big as the physical oil market, so you could say that there is a 1 in 30 chance that that trade is physical. The big players like the oil companies, and global trading houses like Trafigura, Vortexa, and a ton of smaller billion dollar firms ARE the oil and commodities markets. They move the market and make billions. Resistance is futile. Physical companies

[ztransforms173]

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[ztransforms173]

- you BETTER be ABSOLUTELY SURE that you have a WAY OUT of the WTI contract (SELL IT) IF you have NO INTENTION to taking DELIVERY - remember NEGATIVE USD 37 WTI per barrel and the ASIAN  crude oil futures SPECULATORS GOT BURNT and the CHINESE and JAPANESE banks and brokerages TOOK HUNDREDS OF MILLIONS OF US DOLLARS IN LOSSES as they WERE TRAPPED and COULD NOT TAKE PHYSICAL DELIVERY z173