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This oil crash is incredible!
West Texas oil for May delivery has fallen below $8/barrel.
But you can see by comparing May delivery (white) vs. June how much of this is about there being physical oil that's about to be delivered and almost nobody having a place to store it.
West Texas oil for May delivery has fallen below $8/barrel.
But you can see by comparing May delivery (white) vs. June how much of this is about there being physical oil that's about to be delivered and almost nobody having a place to store it.
Holy crap!
Now it's below $6 a barrel!
https://www.bloomberg.com/news/articles/2020-04-19/oil-drops-to-18-year-low-on-global-demand-crunch-storage-woes?srnd=premium&sref=vuYGislZ
Now it's below $6 a barrel!
https://www.bloomberg.com/news/articles/2020-04-19/oil-drops-to-18-year-low-on-global-demand-crunch-storage-woes?srnd=premium&sref=vuYGislZ
"“Refiners are rejecting barrels at a historic pace and with U.S. storage levels sprinting to the brim..." https://www.bloomberg.com/news/articles/2020-04-19/oil-drops-to-18-year-low-on-global-demand-crunch-storage-woes?srnd=premium&sref=vuYGislZ
Crazy to think that if you bought oil for May delivery last night around 9 PM, you're already down 83%
It seems crazy to think that the price of a commodity could plunge over 80% in a few hours.
But in an extreme situation, just a tiniest shift in the supply/demand equation can result in huge price swings.
But in an extreme situation, just a tiniest shift in the supply/demand equation can result in huge price swings.
