crude for May delivery falling below zero for the first time to settle at negative $37.63 per barrel. The crash shows a stark picture of how demand has been obliterated by the coronavirus pandemic while storage tanks in the U.S. have run out of space — literally, companies are paying traders to take the oil off their hands.
"That storage is just as full for June, if not fuller, than it was for May. Already Cushing is 70% or 80% full, and that technically means it's closed for business. So we could easily see this play into the June contract pretty soon." The June contract for WTI was trading at $20.31 around 9 a.m. London time on Tuesday, down 18% from the previous day but at a price analysts say is still more reflective of the oil market writ large. The negative May contract — which later turned positive to surpass $2 but fell back to less than negative $3.
"There's an eight-week danger zone here between today and sometime in June — where between now and then, anybody who thinks oil has found a floor is playing with fire and trying to catch the famous falling knife, because it's almost impossible to call," he said.is at one of its widest levels ever, with Brent trading at a nearly two-decade low of $19.
How far below zero is the floor?
What happens when we run out of barrels to hold the barrels? Will the produce of metal sky rocket?
OilPrices
Might be a simplistic suggestion, but it seems the perfect time for fossil fuel companies to use some of their resources to invest in or shift to renewable energy. We'll still crave petroleum for quite some time, but seems a shift would be wise. Profit available.
This one was just for you Comedy Numpty Bullish Charlatans
Because there's always been to much Oil, dimands the same etc...