Oil plunges below zero for first time in unprecedented wipeout

[sandensea]

Of all the wild, unprecedented swings in financial markets since the coronavirus pandemic broke out, none has been more jaw-dropping than Monday’s collapse in a key segment of U.S. oil trading.

The price on the futures contract for West Texas crude that is due to expire Tuesday fell into negative territory -- minus $37.63 a barrel.

That’s right, sellers were actually paying buyers to take the stuff off their hands.

The reason: with the pandemic bringing the economy to a standstill, there is so much unused oil sloshing around that American energy companies have run out of room to store it.

And if there’s no place to put the oil, no one wants a crude contract that is about to come due.

At: https://www.bloomberg.com/news/articles/2020-04-19/oil-drops-to-18-year-low-on-global-demand-crunch-storage-woes

A little something from 1982, when crude oil traded at around $32 - over $85 at today's prices.

[pbmus]

1. Love that song...thanks

[sandensea]

2. You're welcome

Whenever oil industry decadence is mentioned, it's what inevitably comes to mind.

[gibraltar72]

3. I pumped a lot of gas at $19.9 back in the day.

Will it go that low? I had to check your oil and wash your windshield at that price.

[PoindexterOglethorpe]

5. I bet you really mean

$1.99. Nineteen dollars sounds a bit steep.

The gas station nearest me is currently at $1.64. I'm in Santa Fe.

[gibraltar72]

6. I meant $19.9 $29.9 cents for Sunoco 260.

[PoindexterOglethorpe]

13. You mean $19.90 for a full tank?

$29.9 would mean twenty-nine dollars and ninety cents. Twenty-nine cents would be written $.29.

[The Blue Flower]

7. I remember 22 cents per gallon when I first got my license

nt

[gibraltar72]

9. That will be $3.00 for your fill up.

[Maeve]

4. But tRump said he fixed it! He talked to Putin!

Everything was going to be all right for the oil industry!


Sorry---anyone who takes what he says seriously has a problem. He can't fix oil and he can't fix covid, cause we can't fix stupid. Not til November. (well, January...)

[gibraltar72]

8. But he digs coal.

[gibraltar72]

10. just checked Gas Buddy

some stations in Mi. $88.9 per gallon.

[FloridaBlues]

11. Stations here around 1.71 per gallon.

[gibraltar72]

12. No splainin some things

It has been at or near $1.20 here for a week.