Crude Oil Futures Hit -$1.43/bbl
This year of the coronavirus is going to yield a lot of firsts, and today is one for the record books. Today, the price for Crude Oil May 20 future dropped to -$1.43. Yup... you get the oil and $1.43 from the seller. That's similar to the negative interest rates we've seen in Europe, but thankfully haven't hit the US yet.
I've never been a commodities trader, but still... to see the OPEC/Russia price war in the middle of the coronavirus pandemic is wild enough... but to see the demand drop, and the price plummet... that's just amazing. I still find it hard to believe.
This year is going to be a wild one to tell stories about! 🙂
UPDATE: as I watched the rest of the day, they actially bottomed out at -$38.47/bbl... that's stunning to me. Sure, it's May 2020 delivery, and that's right around the corner, and the storage tanks are all full, so it's got to be moved somewhere... but I never thought I'd see more production than demand.