kdo

The Oil Scam Driving Crude Over $80

Actually, I am definitely someone who knows nothing about the futures markets, so here's my question. When the contract is rolled, there has to be a buyer on the other end right? What is the process by which the forward contract is canceled w/o delivery to the new buyer? I would think that a whole lot of selling of the forward contract as it comes close to expiry would depress in price right before expiry and the market would anticipate it as it happens. What am I missing? Is NYMEX buying and selling, so acts as a market maker and only ensures delivery of what ends up being outstanding?