On Monday this week something peculiar happened in the European natural gas market: the spot price went negative. That is, traders were paying other traders to take contracts for gas deliveries off their hands. EU energy prices are artificial! There is no scarcity. This is a planned strike on the EU
(media.greatawakening.win)
🗣️ DISCUSSION 💬
Maybe all it means is traders are trying to offload contracts they know or think they will not be able to fulfill, i.e. breach of contract, hence hefty fines plus compensation and/or reparations to be paid to clients. This guy's interpretation of what this means in relations to the gas market is just his opinion and I think it is bonkers but that's just my opinion...
This.
Futures markets are almost always hardcore B/S because most of the participants playing them are day traders, not companies/individuals using futures to hedge on their input costs for business. This sound similar to how oil prices went "negative" in 2020, where the day traders were all abandoning ship because they couldn't actually take delivery on the future contracts they owned.