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by chopete3 59 days ago
>> Investors placed a bet

Aren't these more of gamblers?. There is no real asset they are investing in.

1 comments

Oil futures are absolutely a real asset - this isn’t Kalshi “who wins an Oscar” junk. Oil futures let consumers like airlines hedge prices, so their role in price discovery and liquidity is important.
When we had that oil glut years ago and traders couldn’t unload their futures, they found out the hard way that futures meant they were legally obligated to take delivery of real oil and store it, causing a mad scramble to figure out what to do with it when storage started running out.
> they found out the hard way that futures meant they were legally obligated to take delivery of real oil and store it

Sometimes, even average(ly stupid) people end up discovering this too:

r/wallstreetbets - 7d ago - Anyone know how I can cancel this? I dont want it - https://old.reddit.com/r/wallstreetbets/comments/1siq4m2/any...

I think it’s fake. Brokers don’t allow retail investors to keep those contracts anymore unless they come with a warrant (i.e. precious metals stored in some COMEX vault). They will auto-liquidate positions well before first notice day unless you’ve already got documentation for a slot at Cushing.