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US oil price plunges below zero for first time in history

US oil price plunges below zero for first time in history

The price of US crude oil has fallen into negative territory for the first time ever as demand for energy plummeted due to the pandemic. On Monday, a barrel of West Texas Intermediate crude oil dropped to negative $37.63, meaning owners of the futures contracts were paying to offload them. It broke the previous low price record $10 a barrel set in 1986. It was around $60 at the start of the year.

Chris
Chris
Oliver Biscuit
Oliver Biscuit 4 months

And yet Canadian gas goes up in price. Goes to show how much tax we're paying at the pump

Nicholas Noel
Nicholas Noel 4 months

Kinda makes me want to buy.

NotACerealKiller
NotACerealKiller 4 months

Time to invest.

Blar
Blar 4 months

Alright, I actually trade the markets, so to all of you who assume this is a good time to jump in, you'd be wrong. You need to understand how oil futures contracts work - not everything is as simple as "price goes down, time to buy". Also the price of crude oil has a very small correlation with the price of refined gasoline/ethanol you buy at the pump, so don't expect a massive change. Back to the point about buying, oil is in a massive ditch and likely will be for years at this point. Buying now is basically giving money away to banks through these contracts. The demand for oil has gone down an unprecedented level at unprecedented speed thanks to the recent price war. Yesterday the price of oil contracts (which is the the price were all talking about, not the price of crude itself) went down 300%. This means if you would've bought contracts for last month, not only would you have lost everything, you would've lost more than you put in originally. If you still think you can time the oil markets better than these people who have already been doing it for years, feel free to give your money away. This is a simple warning: Do NOT try and give advice about markets YOU DONT UNDERSTAND. There are too many clearly juvenile comments saying to buy - PLEASE IGNORE THEM, THEY DO NOT UNDERSTAND.

asKaren
asKaren 4 months

So, that means if more people started working from home and we start using solar energy more, oil looses its value. That would eliminate the power struggle over oil, wars, and mother earth would be happier, humm.?

Ryan
Ryan 4 months

Does this mean anything negative for everyday consumers in the short or long-term or does it only affect the oil companies themselves? I’m very unfamiliar with the oil markets.

Qin
Qin 4 months

These are prices for "futures" that are getting over date. Basicly they bought oil ahead of time. So now the oil is ready to be delivered, but all the storage is full, soo nobody takes it of their hands. So you won't get negative prices at the pump. More a stockbroker problem, then something we get to deal with.

Jack
Jack 4 months

Wow! I can't see green power competing with those prices. I thought nuclear power would be their main obstacle, but this is something else.

Chuck
Chuck 4 months

Ok, so does this mean that when I pull up to the pump at RaceTrac and pump 28gals of fuel on debit card, I get a $25.00 USD credit? 🎶 OH Happy Day 🎶

Nick
Nick 4 months

Financial paper pushers caught with the May contract in hand and no one has storage for the “instrument” - caught with their hand in the cookie jar comes to mind - futures regulators will need to look into this “event” - Surely non producing countries should be filling up? #New storage wars

chad joice
chad joice 4 months

Can I get paid to drive my car now thanks Signed everyone

Max Bants
Max Bants 4 months

Fill up car. Cashier pays you.

Krispy
Krispy 4 months

The bottom is in.

Yosef
Yosef 4 months

And that's even though oil may still be in demand for heating?!

Andybars
Andybars 4 months

War it is then 😂

The Inquisitor
The Inquisitor 4 months

Shut up and take- no, give me money!

Austin
Austin 4 months

I am fine with this. We need cheaper energy and we need less oil consumption. This shows how wasteful we are.

Cas The Demon
Cas The Demon 4 months

This is awesome.

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