Crazy stuff. WTI at -$25 a barrel

[brokephibroke]

No where to put it. No one will deliver the contracts at that price. Really more important to slow the production for a few months to use the excess inventory.

Will gasoline go negative? Not a chance at the pump.

[kimbutgar]

1. There are a bunch of oil tankers parked in the SF Bay that are idle

I can look out on my deck and see across to the Port of Oakland. I can’t get over the number of boats there. My friend who works for the port told me that the ships can’t off load and the crews are quarantined. It looks like a boat parking lot in the water.

And for three weeks A Princess cruise ship was on those waters also.

[safeinOhio]

2. Can anyone explain negative price on commodities?

Does that mean they will pay you $25/ barrel to take it away. WTF?

They post negative as to opening price, but never seen a negative in front of current price.

[muriel_volestrangler]

8. You have to take delivery of it in Oklahoma

Alexander Burgansky, head of oil & gas research at Renaissance Capital, says the matter comes down to the way that WTI futures contracts work and the lack of oil storage capacity available in Cushing Oklahoma.

WTI May-dated futures contracts, which expire Tuesday, require futures buyers to take delivery of the oil in Cushing. But given that there is little if any storage space available in that location the traders are ditching their contracts, Burgansky explains.

"[O]il traders are selling tomorrow's futures to avoid taking a physical delivery," he wrote in a recent report. Instead, traders are now buying June-dated contracts, which recently were fetching approximately $23 a barrel.

None of these gyrations are happening with Brent crude futures. Brent crude can be delivered offshore to a variety of locations, explains Burgansky. If there isn’t much storage in one place then the oil can be delivered elsewhere.

https://www.forbes.com/sites/simonconstable/2020/04/20/the-real-reason-oil-futures-plunged-on-monday-isnt-what-you-think/#33c2fc3c9e97

[Renew Deal]

3. How do I get my oil and $25?

This is a great deal.

[safeinOhio]

5. Well here you go from MarketWatch

U.S. oil's May contract plunged into negative territory on Monday, meaning that you would have to pay to get someone to take barrels of oil off your hands. West Texas Intermediate oil trading on the New York Mercantile Exchange plunged nearly 300% to settle at negative $37.63 a barrel. The May contract expires CL.1, -236.83% CLK20, -236.83% Tuesday. That one-day drop marks the first time the contract has traded negative in history and would be the largest tumle on record going back to 1983, while a finish near its current level would be far below the previous all-time low for a front-month contract, according to Dow Jones Market Data. The June contract CLM20, -16.66% which is the most-active, ended down $4.60, or 18.3%, at $20.03 a barrel

U.S. oil's May contract just marked history, plunging about 300% to settle negative $37.63 a barrel

I've got 3 empty 55g barrels sitting here.

[Renew Deal]

7. I'm going to stack it up next to the TP

[safeinOhio]

9. Dats a Duzy.

[brokephibroke]

10. Man if you have some Lysol

I’ll pay you a tanker of crude for it.

[Renew Deal]

11. Deal

[safeinOhio]

12. Throw in 4 books of Green Stamps

and you got it.

[brokephibroke]

13. Beanie babies OK instead?

[Yavin4]

14. All the makings of a spectacular fire. n/t

[El Supremo]

4. I think that is the futures price.

I saw $3 trading price for WTI. That is still as low as I can remember.

[CountAllVotes]

6. It was at $10, then $6 and now -20.3100

-20.3100-38.5800 (-211.17%)

They cannot give it away!

My god!