2292 Chanel Rion OAN: #BREAKING: US Energy Secretary Dan Brouillette announces he has been authorized to expand the Strategic Petroleum Reserves to 1 billion barrels. (mobile.twitter.com) SUPER ELITE posted 359 days ago by 4moreyears 359 days ago by 4moreyears +2292 / -0 148 comments share 148 comments share save hide report block hide child comments Comments (148) sorted by: top new old worst You're viewing a single comment thread. View all comments, or full comment thread. ▲ 4 ▼ – BoughtByBloomberg 4 points 359 days ago +4 / -0 Well the producers can choose. Pay 40 per barrel or you get to donate it for 0. Still a 40 cost saver. permalink save report block reply ▲ 1 ▼ – rbobjones69 1 point 359 days ago +1 / -0 Those guys forward sell their production as a hedge against just this kind of thing. The holder of the futures contract will be stuck without a chair when the music stops if they can't store it. permalink parent save report block reply ▲ 1 ▼ – deleted 1 point 359 days ago +1 / -0 ▲ 1 ▼ – rbobjones69 1 point 359 days ago +1 / -0 They are in default and they lose everything. They can have their assets seized to cover the shortfall, including the negative amounts. permalink parent save report block reply
Well the producers can choose. Pay 40 per barrel or you get to donate it for 0. Still a 40 cost saver.
Those guys forward sell their production as a hedge against just this kind of thing. The holder of the futures contract will be stuck without a chair when the music stops if they can't store it.
They are in default and they lose everything. They can have their assets seized to cover the shortfall, including the negative amounts.