One Trader Who Cashed in on Subzero Oil Prices Sees Rare Payout
- BB Energy bought oil on the day prices turned negative
- Few traders had room to receive physical barrels at Cushing
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The day oil prices turned negative will likely be remembered as the climax of the darkest period ever for the petroleum industry, but for one lucky trading shop it was the opportunity of a lifetime.
While many rushed to liquidate positions and cover margins as the May contract neared expiration, BB Energy, a medium-sized trading house based in London, bought 250,000 barrels of the West Texas Intermediate crude futures for May delivery, according to a person with knowledge of the situation. The WTI contract closed at minus $37.63 on that day.