(Bloomberg) -- S&P Global Inc., the company behind the most popular commodity index, told clients to roll all their exposure out of the West Texas Intermediate crude oil futures for June into July with immediate effect, triggering a big drop in oil prices.
“This unscheduled roll is being implemented based on the potential for the June 2020 WTI Crude Oil contract to price at or below zero as well as the steady decline in open interest for the June 2020 contract,” the company said in a notice seen by Bloomberg News. A spokesperson confirmed the notice.
The changes affect dozens of investment products that track the S&P GSCI, the most popular commodity index that's tracked by billions of dollars in passive, long-only funds such as pension funds.
WTI June futures plunged to near $10 a barrel in early trading in London, down nearly 20%.
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