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In reply to the discussion: Crude Oil has gone NEGATIVE! [View all]Mike 03
(16,616 posts)33. NYT explains how this is even possible
(I've never seen this)
It was a bizarre day for oil traders, owing largely to a quirk in the way that oil prices are set. Oil that is scheduled to be delivered next month fell 12 percent Monday to about $22 a barrel, but at the same time a key benchmark for oil to be delivered Tuesday was essentially deemed to be worthless by investors. It actually fell into negative territory, meaning people who had oil to sell were willing to pay people to take it off their hands.
The problem is that the United States is running out of places to store its oil.
Oil is already being stockpiled on barges out at sea, and in any nook and cranny companies can find in their storage facilities. Now, traders are worrying that even this space is running out. Under futures contracts, West Texas Intermediate the American oil-price benchmark is delivered to Cushing, Okla., but investors are worried that there will be no place to put it there.
The problem is that the United States is running out of places to store its oil.
Oil is already being stockpiled on barges out at sea, and in any nook and cranny companies can find in their storage facilities. Now, traders are worrying that even this space is running out. Under futures contracts, West Texas Intermediate the American oil-price benchmark is delivered to Cushing, Okla., but investors are worried that there will be no place to put it there.
https://www.nytimes.com/2020/04/20/business/stock-market-live-trading-coronavirus.html#link-a677d6a
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Awesome, in for 10 barrels. Wonder if my wife will mind if I store them in our spare bedroom...
cbdo2007
Apr 2020
#35
we are actually doing that, but the SPR is tiny compared to the glut we have right now
Amishman
Apr 2020
#55
If one is going to buy on the dip, it doesn't seem like it gets any dippier than it is now
Submariner
Apr 2020
#50