Posted on 04/20/2020 4:52:32 PM PDT by Lazamataz
Crude oil prices dropped into negative territory for the first time in history Monday, as financial fireworks collided with evaporating demand and scarce storage. The decline below zero means that sellers are effectively paying buyers to take the oil off their hands.
By late Monday afternoon New York time, the front month WTI contract was sitting at minus $38.45/barrel, down an eye-watering 310.45% on the day.
"It’s like trying to explain something that is unprecedented and seemingly unreal," said Louise Dickson, an oil analyst at Oslo based Rystad Energy.
That descent into negative territory marks a remarkable, apparently unstoppable, decline over the course of the day. However, while analysts warn the market is weak, the sheer scale of the decline is largely a reflection of a technical clash—rather than real-world trading.
(Excerpt) Read more at fortune.com ...
Somebody has to take delivery.
This could be the time to double our Strategic Reserve, and use the profits to build the wall.
Oil prices are not negative. One specific oil future contract is negative, because the storage hub in Cushing Oklahoma is near full where you are required to take delivery for this particular futures contract.
President Trump was asked about it. He said it was financial thing caused by shorts being squeezed. And they apparently really got squeezed
At the same instant, the 30 day price was $25 to $28
A lot of things we didn’t think could happen are happening.
OK here is what we do ... Tomorrow EVERYONE get in their cars and drive around for 200 miles or so and hen go fill up.
That should help.
Yet per gallon price at our Sheetz down the road price stays the same.
So many trigger words in one package.
I should bought 2 million contracts at -$35 a barrel.
And had it shipped to Pelosi’s address, while I skipped town.
Free gas? Oh wait, taxes will still be collected.
Not a bad idea. See the sights go through drive through food outlets get gas at drive through. Enjoy the spring scenery.
Be sure to do it on Wednesday (Earf Day).
Right you are. Fill up the Strategic Petroleum Reserve!
It can't. And it didn't. The expiring April futures contract went negative. The actual price of a barrel of oil is around $26.
The media -- with an average education level of 10th grade -- breathlessly pushed this nonsense all day, because it feeds into the panic. It's not good news, of course, as oil itself is very weak, and many U.S. jobs will be lost in this great industry. But the headline itself is ridiculous.
I leave all three of my cars, my lawn mower, and my atv run all night. I’m doing my share. I have the House doors and windows open with the thermostats set at 75 degrees too.
that is mainly based on unleaded gas futures, which after a steep plunge in March, have actually been increasing in April.
Aren’t there some old mines and such the Obamanites wanted to store captured CO2 in? Screw ‘em, back up the tankers and fill ‘em up!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.