California Worst Oil Spill In Decades, Worlds Largest Commodity Traders Face Massive Margin Calls

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Shares of Amplify Energy crashed as much as 50% in premarket and is down 40% in the US cash session after its subsidiary, Beta Offshore, experienced a leak in its pipeline off the coast of Huntington Beach, Orange County.
Amplify shares are set to record the worst ever daily decline in the company's five-year trading history
A company statement said operations at the Beta Field had been shut down as a precautionary measure, and an Oil Spill Prevention and Response Plan has been initiated as city authorities for Huntington Beach, which is a beach town within Orange County, estimates 126,000 gallons of oil leaked from a broken underwater pipeline, covering beaches and wetlands with crude.
Seven sources with direct knowledge of the matter told Reuters that the world's top commodity trading houses are being told by brokers and exchanges to deposit hundreds of millions of dollars in extra funds to cover their exposure to soaring gas prices.
Glencore, Gunvor, Trafigura and Vitol are among the commodity merchants facing massive margin calls on their positions in natural gas markets across Europe and US.
According to reports, it appears the trading shops have all been hammered by a spread (or arbitrage trade) gone wrong.
For years, the prices of European (red) and US natural gas (green) have traded within a well-defined range. When the spread between the two reaches one extreme or the other, you buy one and sell the other - easy, right?
So as European NatGas prices surged in Q2, it reached a notable extreme relative to US NatGas, prompting traders to instigate the strategy of selling European Gas and Buying US Gas in the hopes the spread compresses.
The strategy backfired last month when European gas prices soared due to a variety of factors including low inventories, high demand for gas in Asia, low Russian and LNG supply to Europe, and outages.