Oil: CFTC warns of negative prices again as expiry approaches next week

The Commodity Futures Trading Commission (CFTC) issued a warning on Wednesday, reminding markets about the upcoming WTI June futures contract expiry on May 19 and likely risks it could bring along.

This comes in light of last month’s expiry for May futures of the barrel of WTI, as the prices witnessed a historic crash and settled in the negative for the first time on record.

CFTC warned exchanges, futures brokers and clearinghouses that "they are expected to prepare for the possibility that certain contracts may continue to experience extreme market volatility, low liquidity and possibly negative pricing."