You have said Zero.. I have told you march future contracts were honoured in full despite there being demand slump in mid-march.Hedging?? Dude you are wrong. Hedging represents a small amount of oil trade. Countries especially china import tonnes of oil for strategic reasons not hedging.
The reason oil dropped is due to demand(Flights reduced by 90%, people did not move about decreasing demand for car fuel meaning companies were left with excess oil), futures had nothing to do with it. Demand for oil slumped to negative territory in America. Quit the sophistry to try and look intelligent.
Also yes, I understand and know derivatives. Derivatives do not determine the price of a commodity (Read black scholes equation) as you tried to claim. It is the price of the base commodity on the market that determines the price of the derivative whether it is a CDO(Collateral debt obligation) or Futures. Before you comment on financial instruments try and read books on financial management by frank fabozzi. How did I know all this? I developed the software used by cyton for portfolio management and I had to catch up to years of financial management knowledge in a matter of months. Also read up on stochastic processes in mathematics.
You are also wrong Italy (March 2020), Britain (March 2020) went into lockdown in Q1, but also again I have to question your economics credentials, You do realize a lot of flight restrictions were placed in Q1 across the world? You do also realize that job losses across the world started in Q1 which means international demand slumped?
NB: If you want to understand derivatives (which from your comment you have no idea what they are) read up on black scholes equation and books written by frank fabozzi.
who said it's illegal? boss that's how international trade is done. You are some weird kid who misuses google. I told you IT techie types like you are bottom of the foodchain fellows atleast when it comes to intelligenceOf course making claims without any evidence is your forte not actual facts. Also re export is not illegal. What you have just said is not hedging that is hoarding which is illegal in a lot of countries. The last part where you are trying to be funny is actually not accurate that is called insider trading not hedging ie A business had insider knowledge about the intention to import mexican maize and they went ahead and bought it before the declaration was made by GOK.
Takwimu za kupika,katikati ya lockdown na curfew,hizo exports zitatoka wapi,mnadanganya world bank ili wasiwashusheHehehe!! Kazi bado zinaendelea ila kwa kutumia akili na tahadhari sio kujiachia kama mifugo.
Ha hahahahaha, Now you are shifting to something you never said. You specifically advertised your ignorance of finance and the markets by claiming future derivatives were behind the slump in oi prices. When any person who has finance knowledge will tell you that is abhorrently wrong and stupid. Derivative prices are determined by the price of the underlying commodity. Oil futures prices will shoot up if the price of oil goes up and go down when the price of oil goes down (If you had read up on black scholes as I suggested you would know this). I guess it was my fault thinking a Tanzanian would be driven to read a book.You have said Zero.. I have told you march future contracts were honoured in full despite there being demand slump in mid-march.
That's why there was glut.
Do yourself a favour and bring data from April
You insinuated it is illegal by giving a false example of insider trading with the mexico maize saga. Yes I am a software developer and also recently(Past 5 months) a small scale manufacturer of Chilli products(Pickles, Hot sauce, Chilli sauce), but apparently I have been teaching you economics and finance from the first day I got into this forum. I am a serial entrepreneur and I understand the market enough to know bull when I see it.who said it's illegal? boss that's how international trade is done. You are some weird kid who misuses google. I told you IT techie types like you are bottom of the foodchain fellows atleast when it comes to intelligence