US Oil Prices @ Negative... WTF!?!?

[tarman5490]

I`m watching on my trading account and the oil is around 20? Where do you find this info? Investing .com shows the same price around 20

the OP is talking about futures. for wti may contracts its in the minus

 

[Brickbat1]

This is apocalyptic! Economic depression on a scale never seen in modern times is about to whack the world.

 

[theRevolt]

The price of US oil has turned negative for the first time in history.

That means oil producers are paying buyers to take the commodity off their hands over fears that storage capacity could run out in May.

Like WTF....!?

View attachment 132843

- They have been pumping out too much while trying to get the Saudis to cut output
- They have been at a net loss for long in that they have run up huge amounts of debt

I read a good (long) article on it yesterday: HERE


TLDR
Long in the making...

 

[loukeyzee]

I have an onion farm..

 

[55trillion]

May future contract is running at 10$ so its a short term crisis. People interested can go long on future contracts are Call options, its a jackpot.

 

[Fuazii]

If oil prices are negative, does that mean the US can end the war in Iraq now?

 

[JackTheBlack]

Insane. This is complete madness....

 

[JeanFerreira]

The Great Equalizer Effect.

 

[BlueBuzzy]

As someone who lives in a city that's largely dependent on oil revenue (crude oil in particular), it's insane - downtown has 20+ skyscrapers and 100s of smaller office buildings essentially shut down for good. While I hope we'll finally start diversifying our economy (which should've been done decades ago), I expect some dark times ahead...

 

[elocin]

How can we make some money from this? What should we invest in specifically?

 

[Sephrata]

How can we make some money from this? What should we invest in specifically?

You can't, unless you have booked storage capacity in Cushing, Oklahoma.

The whole issue is that there is no booked storage capacity and holders of the May WTI contract for physical delivery (without booked storage capacity) are unable to roll their positions into the next contract month of June.

Most people trading futures contracts with physical delivery never actually take physical delivery. They either close their positions (net them off) or they roll them into the next calendar month's contract.

It would appear that traders have either waited too late to roll their positions, or they have tried to buy storage capacity and realised there is none available.

 

[MichaelReyeeees]

Would anyone consider this a "blood is running down the streets" kind of moment? Lots of investors say that these are the moments one should invest

 

[Aaric]

and where will you burn that oil in excess

 

[LegendAndroidX]

i've just invested 500$ in etoro for this . " just playing tho "

 

[JeanFerreira]

i've just invested 500$ in etoro for this . " just playing tho "

Well it's a game if go up again you gonna make a lot of money

 

[Fuazii]

Let this sink in...

A 42-gallon steel barrel is now worth more than the oil in it (not that much oil is in actual barrels.)

 

[rasbsal]

is actually buying oil on eToro a good idea now or I shouldn't risk it?

 

[Wilcoo1]

is actually buying oil on eToro a good idea now or I shouldn't risk it?

The only good idea you should consider is to stop trading CDF’s.

 

[rasbsal]

The only good idea you should consider is to stop trading CDF’s.

hahaha gotcha

 

[macdonjo3]

You can't, unless you have booked storage capacity in Cushing, Oklahoma.

The whole issue is that there is no booked storage capacity and holders of the May WTI contract for physical delivery (without booked storage capacity) are unable to roll their positions into the next contract month of June.

Most people trading futures contracts with physical delivery never actually take physical delivery. They either close their positions (net them off) or they roll them into the next calendar month's contract.

It would appear that traders have either waited too late to roll their positions, or they have tried to buy storage capacity and realised there is none available.

It's been weeks, maybe months since I've learned so much from a BHW post.

So is there a lag time for the prices to affect gasoline prices? I have a 10,000 gallon underground tank I wouldn't mind filling on the cheap lol