US oil prices crash below $0 a barrel

https://edition.cnn.com/2020/04/19/tech/global-stocks/index.html

by doener • 6 years ago

31 10 6 years ago

edition.cnn.com

united893• 6 years ago

This is not the real price of oil. It's just a long squeeze -- an unfortunate side effect of the USO ETF as its rolling its holdings into the next futures contract.

See: https://www.bloomberg.com/opinion/articles/2020-04-20/there-...

BozeWolf• 6 years ago

Absolutely a great newsletter to subscribe to. Really well written articles.

The current situation is really well explained. Basically contracts which make you owner of oil end tomorrow. you have to store it somewhere then. or sell the contract quickly for -37$ before the market closes. Article for more details.

overcast• 6 years ago

-$37.63. Welcome to Thunderdome.

billfruit• 6 years ago

Is this something localised, because Brent is still at 28 dollars.

masonhensley• 6 years ago

May 2020 futures contracts for WTI (that expire tomorrow)

I'm oversimplifying it... there is so much more supply than demand that groups that can't take physical delivery of a contract (no space) and are paying to have it taken off their hands.

Better discussion here: https://news.ycombinator.com/item?id=22924321

dang• 6 years ago

https://news.ycombinator.com/item?id=22923025

damon_c• 6 years ago

Maybe we can start running the wells in reverse and start putting it back.

riskneutral• 6 years ago

If that were possible the price wouldn't be negative. Leaving it in the ground is in fact the cheapest storage option.

ineedasername• 6 years ago

It's counter intuitive to have negative prices, but I think this sums it up nicely: "If you have a thing that lots of people want, but that no one wants right now, it is hard to put a normal price on it."[0]

[0] https://www.bloomberg.com/opinion/articles/2020-04-20/there-...

akmarinov• 6 years ago

Hey, I’ll take some money to store a couple of barrels

US oil prices crash below $0 a barrel

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