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May crude oil futures closed at -38.45. That's MINUS 38.45!
2020 Apr 20, 2:03pm 2,742 views 21 comments
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2
WookieMan
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2020 Apr 20, 2:27pm
WookieMan
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2020 Apr 20, 2:27pm
rocketjoe79 says
There's too much oil. Not a market I understand at all, but what I've heard is that they don't have places to store what is being pumped right now. It goes negative because they have to pay people to take the oil. Places like Saudi Arabia and Iran burn if they're not pumping oil. So they'll pump it at a loss so their regime doesn't get overthrown.
Again, not a market I understand, but that's my guess.
CNBC Futures show Oil as a negative. Not sure how this can be?
There's too much oil. Not a market I understand at all, but what I've heard is that they don't have places to store what is being pumped right now. It goes negative because they have to pay people to take the oil. Places like Saudi Arabia and Iran burn if they're not pumping oil. So they'll pump it at a loss so their regime doesn't get overthrown.
Again, not a market I understand, but that's my guess.
3
Hircus
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2020 Apr 20, 3:05pm
Hircus
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2020 Apr 20, 3:05pm
if the prices will stay close to zero for a little while, why not just make a man made lake of oil to store it? it should be much easier and cheaper to pump out of a lake than a drill rig.
maybe these neg prices are just a snap back price reaction, and will only last a very short period of time until they adjust how many tankers they send per wk.
maybe these neg prices are just a snap back price reaction, and will only last a very short period of time until they adjust how many tankers they send per wk.
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Small data point, I live in LA county and travel frequently to the boundary of Kern County, a big historic oil producing area. Usually pump prices are 10-20c less than LA, but this was upside down by 30-40c a gallon this weekend, with Kern prices apparently not merely falling later but actively going UP.