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To put in a simpler terms, they didn’t have to take delivery, because they sold the oil earlier in the day to someone else. Since they didn’t have any oil at the time, they sold it “short”. Then, at the end of the day when they “bought” the oil at the negative prices, it was used to cover the contracts for the oil they sold earlier in the day.

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Please tell me if I’m correct:

1. Sell futures contract At $15 (bearish position)

2. Buy futures at TSA when it’s negative - an equal amount to the ones u sold- to cover the futures you initially sold

Yup. When the price at the end of the day is negative, you get money both when you originally sell, and also when you later buy.

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