In the early 1990s, Metallgesellschaft (MG), a German company, sold a huge volume of 5- to 10- year heating oil and gasoline fixed-price supply contracts to its customers at 6 to 8 cents above market prices. It hedged its exposure with long positions in short futures contracts that were rolled over. The result was a loss to MG of $1.33 billion. What was Metallgesellschaft doing? Why did Metallgesellschaft doing have losses? Was it speculation or sound risk management? Who gained or lost, and in what ways? Who bears responsibility? What is the current status of this financial disaster?