Oil Falls 300%. Or Something. Is Less Than Worthless Now.
Oil went to zero on Monday. And then it fell some more.
Described (somewhat aptly) as a "technical oddity", the combination of imminent expiry for the May contract and the worst fundamental backdrop in the history of the global oil market sent WTI tumbling deeply into negative territory.
The complete wipeout in the May contract shattered every record low for oil prices dating back at least 74 years. The figure below shows the moment it became apparent that zero was a foregone conclusion:
It
Just when you think you’ve seen everything…
The Donald can finally halve the national debt as he promised to by filling the SPR.
Happy I’m not chasing margin calls for some commodity house.
I wonder who shorted oil at $0?
LOL.
Can we (get paid to) top up the strategic oil reserve now?
Keyword: Bank Of China. This bank selling a product called “paper oil” means that individuals can buy minimal of 10 barrels of oil through registration. On 4/21, the last day of the contract, the TAS triggered for most of the 77076000 barrels of contracts from the bank. Force to close so many of the contracts maybe the reason why there is negative price.The agent of the bank failed to renew these contracts for their customers and due to the negative value of these contracts, the people who failed to renew their contracts at that moment will have to pay double the price of their contracts to the bank, after the bank force to withdraw all of their money. WTF???