FOR 1st time ever, OIL FUTURES TURN NEGATIVE. Tomorrow, trading in oil for 5/20 delivery expires. Whomever holds that contract must take delivery of that oil on 5/20. Right now, because of NO demand/place to store it, BUYERS ARE PAYING SELLERS NOT TO DELIVER THE OIL

The issue is not that there is no value to the oil. Rather to take delivery of it on 5/20, you have to be able to store it, and there is no available storage space in the US

As my partner @SRuhle points out, West Texas Intermediate Light Sweet Crude oil for delivery on 6/20 Is trading above $20, which means traders assume that both demand and capacity will increase

Remember that owning an oil contract when trading expires COMPELS you to take physical delivery of that oil, so people who own those contracts are basically PAYING other people to take the contract - and the obligation to take delivery of the oil

BREAKING: A barrel of crude for delivery one month from today is now NEGATIVE $35. In other word, someone who owns the right to that oil will pay person who has the oil $35/barrel NOT to deliver it to them on May 20 (oil contracts expire once a month for delivery once a month)

Oil is, today, a hot potato, except in addition to throwing the potato YOU OWN back at the person from who you just bought it, you’re ALSO PAYING them NOT to toss it back to you.

Something to remember: OIL itself is not negative. This is a logistics issue: collapse in demand has resulted in ZERO storage capacity IN America or offshore. Contracts for oil for delivery a month later, in June, is still trading above $20/bbl