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

[William Flynn Wallace]

Wow.  You mean I can go fill up and they pay me?  bill w

On Mon, Apr 20, 2020 at 3:51 PM Adrian Tymes via extropy-chat <
extropy-chat at lists.extropy.org> wrote:

> 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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