It’s remarkable how many people who don’t have the fuzziest notion of how the economy works manage to win high elected office.
I would suspect her point is instead of bailing out the oil companies spend that cash on investment into free tech. Let oil die, which over the long term will create a Shortage and a price increase and that could be filled with green tech.
I doubt she believes that the transition to green energy is accelerated by low oil price.
I can see this working for parts of Milan, particularly the center area around the Duomo. In normal times there are so many people congregating in the Piazza Del Duomo that car movement is narrow and obstructing to pedestrian movement. Not sure how the outer core would work that well though.
The ETF buys front month futures contracts with retail investor money and rolls it over between monthly crude contracts, today they announced they won't sell more shares to fill baskets of crude futures. So everything is basically riding on June 80% and July 20% futures contracts. June futures they started buying last few days have gone from $20s to $7 today, July will get dragged lower. If June's contract goes negative then the USO holders will be on the hook for the pay to take cost and the EFT will become insolvent.
At least that's my understanding of what will play out.
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The only thing holding USO up currently is a constant influx of Robinhood traders that keep plowing their small accounts thinking oil will eventually go up. They don't understand how the ETF is structured and that they are basically guaranteed to lose everything. I bought puts on it this morning, but I worried about cashing them if it collapses so I sold up 30% early.
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The ETF buys front month futures contracts with retail investor money and rolls it over between monthly crude contracts, today they announced they won't sell more shares to fill baskets of crude futures. So everything is basically riding on June 80% and July 20% futures contracts. June futures they started buying last few days have gone from $20s to $7 today, July will get dragged lower. If June's contract goes negative then the USO holders will be on the hook for the pay to take cost and the EFT will become insolvent.
At least that's my understanding of what will play out.
Also, the ETF is a huge player in the market. Commodities traders are aware of this, and know that if the value of USO gets low enough, it will liquidate and sell a huge amount of June futures. Wanting to make money, they short june futures in huge size. That pushes the price down. The ETF sponsor wont want the value of USO to go negative, so if the value of the fund gets low enough they will liquidate. That will be a huge forced sale of june crude futures, pushing the price down even more. Then the traders will cover their shorts.
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How does anyone think oil prices will recover in the next 2 months? As of May, we will still be producing at least 20% more than consumption, every day. All storage is full. It's baffling.
