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

[Adrian Tymes]

If the negative prices had lasted long enough for effects to come down the
supply chain all the way to your local gas station, that might indeed have
happened eventually.

They didn't, and it was expected they wouldn't.

On Mon, Apr 20, 2020 at 2:16 PM William Flynn Wallace via extropy-chat <
extropy-chat at lists.extropy.org> wrote:

> 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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