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The oil price in 90 seconds! [THREAD]
1. Most popular grades of oil quality are West Texas Intermediary (WTI) & Brent North Sea Crude (Brent)
2. Brent is a blend from of 15 oil fields in the North Sea. It& #39;s 2/3rds of world production. Benchmark for Africa, Europe + Middle East
1. Most popular grades of oil quality are West Texas Intermediary (WTI) & Brent North Sea Crude (Brent)
2. Brent is a blend from of 15 oil fields in the North Sea. It& #39;s 2/3rds of world production. Benchmark for Africa, Europe + Middle East
3. WTI is the benchmark for North America. WTI trades on exchanges in Chicago & New York
4. You can buy a contract for oil in the future. Think of UberEats, you want Nandos next Thurs night. You pay now & it gets delivered next week. This is called a futures contract
4. You can buy a contract for oil in the future. Think of UberEats, you want Nandos next Thurs night. You pay now & it gets delivered next week. This is called a futures contract
5. Thursday comes around & you already had dinner. Fuck. But you ordered Nandos! There& #39;s no space! This is EXACTLY what happened in the oil market today
6. New York WTI futures contracts expired at -$37 today. Yes, negative. Wait, hold up. How is the oil price negative?! Read on
6. New York WTI futures contracts expired at -$37 today. Yes, negative. Wait, hold up. How is the oil price negative?! Read on
7. Simple. You have to PAY someone to take it from you. If you don& #39;t, you have to accept delivery. Loosely, a producer will pay up to $40 for you to take a million barrels of oil.
8. Hey let me take some!! No, that excludes the freight & shipping costs. Also your house is small.
8. Hey let me take some!! No, that excludes the freight & shipping costs. Also your house is small.
