THREAD: OIL FUTURES BELOW $1 & HEADED NEGATIVE

Why aren’t more people concerned from a consumer & overall economy perspective?

What does this mean?

It’s just one month - ONLY MAY FUTURES (which goes into delivery on Wednesday)

You need to have a place to put that oil & right now every storage facility in the US is completely at capacity (There is nowhere to put it).

However, JUNE futures are trading at $22, which means- we assume demand and capacity will increase in a month.

Why is this happening?
Oil prices have been crashing because no one is traveling (airlines, roads) and because economy is at an essential halt.

So less need for oil, way too much supply out there.

These are all futures contracts - so prices are determined by how oil will act in the future because it's the last moment to trade before the contract expires tomorrow.

Also, remember last week OPEC said they would cut back oil production, to help with supply of oil.