Posted on 04/20/2020 12:08:37 PM PDT by C19fan
U.S. crude oil futures turned negative Monday for the first time in history as storage space was filling up, discouraging buyers as weak economic data from Germany and Japan cast doubt on when fuel consumption will recover. Physical demand for crude has dried up, creating a global supply glut as billions of people stay home to slow the spread of the novel coronavirus. West Texas Intermediate crude for May delivery fell more than 100% to settle at negative $37.63 per barrel. Meanwhile, international benchmark, Brent crude, which has already rolled to the June contract, traded 8.9% lower at $25.58 per barrel.
(Excerpt) Read more at msn.com ...
These are futures prices, not the price of oil.
People who own futures contracts have no place to store oil because of the glut, so they'll be forced to buy oil they can't store or sell if they hold onto those contracts.
Mygawd people are stupid.
Trying to wrap my head around the concept of negative oil prices. I mean, I understand the short answer of “seller paying the buyer to take it off his hands,” but I just don’t quite understand how that would work in practice. Let’s say you’re a refiner who buys crude.. Okay not you’re being paid to take it? That’s just bizarre.
Remember when Obidiot said we were at peak oil and we couldn’t drill to lower prices?
Electric vehicles and solar? /s
Theoretically, yes. The producer would be paying someone to store the oil so he can keep his wells open. A lot of leases terminate if the well on the lease is shuttered. If this is a temporary thing it makes sense. Let's see what happens at expiration tomorrow.
The Jerry can aisle at Walmart will soon look like the TP aisle.
With all due respect, to say it means NOTHING is absurd.
The next month didn’t stay even or go up..it dropped 25 percent.
If no one told you, oil is used for things that gasoline is not.
And maybe no one told you but this will devastate refineries if the next month out doesn’t hold. 20 bucks is probably devastating to many, 5 or 10 bucks will destroy the bigger ones and untold jobs
Means “nothing”?
Hardly
LOL - yes, you are correct!
I was thinking that with a negative price, the US Oil reserve would not need approval from Congress to “top off”. In fact, with a negative price, they would be making tax revenue.
You seem really angry.
Which lie are you referring to?
Maybe we can rig up these oil well pumps to INJECT this excess Saudi oil back into the ground. Stranger technological marvels have been undertaken.
And who knows? This may be an even more important part of our Strategic Petroleum Reserve than we already have.
Or we could install some oil-burning boilers at decommisioned nuclear power plants and return at least a portion of their function to the national grid.
Besides, we are running out of carbon dioxide. Not enough to make “light” beer or most carbonated drinks. Capture this carbon dioxide production and make it commercially available.
Do I have to do ALL the innovative thinking here?
Um, why don’t we start with the bogus numbers of projected deaths from this bug!
I’m not going to waste time on you!
So I guess our Strategic Reserves are full? At least here in no-quarantine north central Florida the gas stations are doing a good business...
No, the next fearmongering isOoooo...The second wave...
This is no big deal.
The traders who bought May 2020 crude futures failed to get out of their position when they were given a last notice day.
Since they had no place to store the crude oil they had bought for delivery in May 2020, they got their clocks cleaned in order to unload their position.
Word to the wise. Do not play the futures market if you don’t know what you are doing.
Yep, this is all about Oil Future contracts.
Duke and Duke Commodity Brokers.
What difference does that matter? It’s on every financial news website and is factually correct.
Gas prices in the US never remotely reflected a $0.42 purchase contract though (usually add $0.50 for taxes and $0.05 for retail profit)
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