[ExI] This is a Historic Day For World’s Oil Markets

[Adrian Tymes]

>From what I'm hearing, you are correct.  The negative price (which appears
to have already recovered to over zero, though still quite low) was because
of the cost of storage.  Contracts which were up for physical delivery were
running into a lack of storage space.  (This isn't including that massive
Saudi Arabian tanker fleet apparently due to arrive next month, which is
already full of oil.)  People with lots of spare storage, though not
previously seen worth keeping oil there, have already stepped up - so if
you're thinking of offering your back yard for a few months, sorry, it's
already too late for you to make a buck that way.

Even adjusting for inflation, negative is negative; inflation is only a
multiplier.  If this is the first time it's gone negative, then this was
the lowest price ever.

On Mon, Apr 20, 2020 at 1:15 PM Dylan Distasio via extropy-chat <
extropy-chat at lists.extropy.org> wrote:

> I don't believe so.  Because there is a cost to store oil (like all
> commodities), and all storage appears to be full, there is the possibility
> of negative prices.   I may be wrong, but I cannot recall another situation
> where there was more oil than storage.
>
> On Mon, Apr 20, 2020 at 4:07 PM William Flynn Wallace via extropy-chat <
> extropy-chat at lists.extropy.org> wrote:
>
>> Has oil ever been any cheaper, adjusting for inflation and all that?
>> bill w
>>
>> On Mon, Apr 20, 2020 at 2:43 PM John Clark via extropy-chat <
>> extropy-chat at lists.extropy.org> wrote:
>>
>>> "*West Texas Crude oil priced at $0.01 at 14:20 eastern time. At 14:22
>>> eastern time, it collapsed to -$1.43 and fifteen minutes later, fell to
>>> -$20 for the May contract. For the first time in the history of the oil and
>>> gas industry, oil became absolutely worthless today*."
>>>
>>> Historic Day For World’s Oil Markets As American Crude Becomes Worthless
>>> <https://www.forbes.com/sites/kenrapoza/2020/04/20/historic-day-for-worlds-oil-markets-as-american-crude-becomes-worthless/#cd2638945dc9>
>>>
>>> John K Clark
>>>
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