Economy
Related: About this forumOil plunges below zero for first time in unprecedented wipeout
Of all the wild, unprecedented swings in financial markets since the coronavirus pandemic broke out, none has been more jaw-dropping than Mondays 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.
Thats 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 theres 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
(12,422 posts)sandensea
(21,635 posts)Whenever oil industry decadence is mentioned, it's what inevitably comes to mind.
gibraltar72
(7,504 posts)Will it go that low? I had to check your oil and wash your windshield at that price.
PoindexterOglethorpe
(25,857 posts)$1.99. Nineteen dollars sounds a bit steep.
The gas station nearest me is currently at $1.64. I'm in Santa Fe.
gibraltar72
(7,504 posts)PoindexterOglethorpe
(25,857 posts)$29.9 would mean twenty-nine dollars and ninety cents. Twenty-nine cents would be written $.29.
The Blue Flower
(5,442 posts)nt
gibraltar72
(7,504 posts)Maeve
(42,282 posts)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
(7,504 posts)gibraltar72
(7,504 posts)some stations in Mi. $88.9 per gallon.
FloridaBlues
(4,008 posts)gibraltar72
(7,504 posts)It has been at or near $1.20 here for a week.