Biggest Commodity Index Moves All WTI Exposure Away From June
Oil tankers sit anchored in the Pacific Ocean outside the Port of Long Beach and Port of Los Angeles as seen from Signal Hill, California, U.S., on Friday, April 24, 2020.
Photographer: Patrick T. Fallon/BloombergThis article is for subscribers only.
S&P Global Inc., the company behind the most popular commodity index, told clients to roll all their exposure out of the West Texas Intermediate crude oil futures for June into July with immediate effect, triggering a big drop in oil prices.
“This unscheduled roll is being implemented based on the potential for the June 2020 WTI Crude Oil contract to price at or below zero as well as the steady decline in open interest for the June 2020 contract,” the company said in a notice seen by Bloomberg News. A spokesperson confirmed the notice.