Saturday, January 16, 2021
Home Lead Story US CFTC Warns About Volatile Crude Oil Contracts

US CFTC Warns About Volatile Crude Oil Contracts

US Futures regulator cautions on volatile crude oil contracts

According to International News, the US Commodity Futures Trading Commission (CFTC) has warned market participants to be prepared that certain commodity contracts may see possibly negative pricing and extreme volatility in the light the negative pricing of crude oil seen last month.

The CFTC has issued an advisory on risk management and market integrity under the current market conditions in the wake of the unusually high volatility and negative pricing experienced in the May 2020 West Texas Intermediate (WTI) light sweet crude oil futures contract on April 20 (the penultimate day of trading and expiration of the contract).

The Commission has emphasised that the subject of this advisory applies equally to trading in other commodities and the registrants should remain vigilant.

The CFTC
The CFTC has issued an advisory on risk management and market integrity under the current market conditions in the wake of the unusually high volatility and negative pricing. Pixabay

The CFTA said that the onset of the Covid 19 pandemic has adversely affected the economies of the US and other major countries.

Read More: Private Companies Now Allowed to Take Part in Planetary Exploration: Finance Minister

Global markets, including those regulated by the CFTC, have been affected by both fundamental and global factors this year as economies and industries have slowed down dramatically or shut down completely, resulting in unprecedented market impacts.

This economic downturn has coincided with substantially increased market volatility in key agricultural, energy and financial sectors, including the futures and options on futures markets regulated by the Commission, it said.

The impact of fundamental and technical factors has been particularly acute for contracts that call for physical delivery of the underlying commodity as demonstrated by the unprecedented price movements in certain commodities, the Commission said. (IANS)

STAY CONNECTED

19,120FansLike
362FollowersFollow
1,773FollowersFollow

Most Popular

How Dolphins Are Anchoring Chilika Lake Tourism Amid Pandemic

A dolphin jumps out of the brackish waters of Odisha's famed Chilika lake and is the cynosure for all eyes on a boat on...

One-To-One Communication Key To Reduce Vaccine Hesitancy

On the day of the launch of the massive immunization drive against Covid-19 that the country has embarked upon, Dr. B.L. Sherwal, Director at...

Regular Alcohol Drinking Linked To Risk Of Atrial Fibrillation

People who regularly drink a modest amount of alcohol are at an increased risk of atrial fibrillation, a condition where the heart beats in...

How Can You Pay And Manage Your Bills With Online Banking

BY CATHY CARTER When you juggle your mortgages, utility bills, and credit card payments every month, using online banking to pay them off makes a...

Ashtottaram 33 OṀ BODHABHŨMYAI NAMAH

By Devakinanda Pasupuleti, MD Ashtottaram 33) OṀ BODHABHŨMYAI NAMAH: Ashtottaram 33: OṀ (AUM) -BO-DHA-BHOO-MYAI—NA-MA-HA ॐ बोधभूम्यै नमः        (Bodha: Teaching knowledge, wisdom, the enlightenment of knowledge, values, knowledge,...

Study: Lack Of Managers Leads To Business Failures In India

Most firms in India and other developing countries are family-owned and often shun outside managers and that is why even successful businesses fail to...

Clovia: The Ayurvedic Solutions For Personal Care

A new solution-based personal care range, 'Clovia Botaniqa', was launched, especially for mothers. The products are based on Ayurvedic formulation comprising of oils, body...

Bursting The Myth: Violent Video Games May Increase Violent Behavior

A plethora of theories has been proposed to support the stance that playing violent video games results in increased aggression and violence. However, researchers...

Recent Comments