Thoughts on oil and the economy

The world economy is entirely dependant on oil. It is the backbone of all economic activity. People commute to work using their cars, things are moved and delivered using road trucks. Cargo, supplies and products are shipped by plane and boat, etc...

Remove the oil from our economy and everything stops. We get thrown 200 years into the past. The biggest economies in the world have the biggest carbon footprints. Until technology allows us to do otherwise, the size of a country's economy is correlated to it's oil consumption.

The demand in oil is one of the rawest and strongest indicators of what pace the economy is in. The faster the pace is, the more oil we need. It's pretty straightforward, the better the economy the more people are traveling, the more goods are being produced, moved and sold.

Not a lot of people know but the negative oil prices were only for the May futures contract so far as it was nearing expiry. Obviously future contracts are technically traded in hopes to benefit from the future usage/price of the commodity traded.

And for May that value was NEGATIVE meaning producers would have to pay to get rid of their oil for that period. The way I see it, the market is telling us that the whole economy is going to shit and most importantly, since this is happening on futures, the end is nowhere near.

Demand in oil is reaching all time lows, there's no more space to store the excess supply and now the market is hinting that it doesn't expect demand to pick up in May enough to clear the reserves and keep up with the supply.

It will probably be the same for June, July, and fuck it maybe all of 2020.

Now if the most important commodity in the entire world, which dictates the pace of the economy, is going down the drain what do you think will happen with the rest of financial assets? They're all going to join oil in hell.

Foolishness is being bullish on anything in a paralysed economy. Oil being bearish because of unexistent demand is litterally the greatest indicator of a global depression.

In the coming time of crisis uncertainty and fear will rule the economy. Those are the feelings that push people to purchase only the absolute necessity and save as much money as they can to get through all of it.

This reduced spending on top of shattered supply and production of all kinds of non-essential goods can only mean one thing. Global demand will be falling off a cliff and so are the prices with it. We're going deflationary and there's nothing we can do about it.

No one is going to buy your shitty stocks when their only worries will be if they manage get their job back after the crisis or if they'll find another job after their company goes bankrupt. No one will buy your stocks, when currency is going to be what goes up in value over time