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could someone who understands petrochemical markets explain to me why oil prices swing so much? seems like it could be solved with storage; is building hugenormeous tanks just prohibitively expensive?
@sneak It's the price of futures, no one will actually pay you to take a barrel of oil away from them, but the expected return on oil futures has gone negative because traders won't touch them.
@p i know how derivatives work. i'm wondering about the actual commodity market itself.
@sneak Ah, okay. Disregard, then. I have no specifics.
@sneak@s.sneak.berlin my general concept is the economy is very much JIT for efficiency sake / don’t pay for storage that you don’t need, which makes money, but is bad in times like these
