A Historic Though Overblown Lesson in Contango and Oil Futures Expiration
Monday's crash in May oil futures can be categorized as fake news, as what happened in crude isn't much different than what we've seen in other industries.
Before attempting to explain what happened in oil Monday, let's start with the basicsCommodities such as crude oil trade in futures contracts listed by the CME Group (CME) . According to the CME, the formal definition of a futures contract is as follows: A legally binding, standardized agreement to buy or sell a standardized commodity, specifying ...
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