It& #39;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& #39;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& #39;s no reason why a contract that expires should go anywhere, but down. It& #39;s impossible to buy.

That& #39;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.

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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.