It's important to remember that this oil move is for the May contract, which is expiring soon.

The June and July contracts are still trading above $20 per barrel. The even further out contracts are above $30.

Just something to keep in mind as the May expiration date nears.

So what's happening?

Literally no one can take delivery because there is no demand. More importantly, there is no storage anywhere at the moment.

Until storage starts to free up, there's no reason why a contract that expires should go anywhere, but down. It's impossible to buy.

That's what is interesting about the contracts going out to June, July, and beyond. They are still holding $20 and above.

At least for now.

Shout out to @macrodesiac_ for making this a point.

Watch the entire curve, not just May even though it is a historic move.

Disclaimer:

I actually am not entirely sure I or anyone else really understands what is going on when a May delivery for crude oil is -$35 per barrel.

One more thing for this thread:

It’s very possible long crude traders waiting to roll their contracts got squeezed insanely.

If you’re a hedge fund trader and you have $20 million in paper oil, there’s no way you’re actually taking that delivery in your Connecticut office.