No, your monitor is not malfunctioning.
Oil prices CLK20, -104.17% made history Monday, finishing in negative territory and implying that investors will need to pay buyers to take a barrel of crude. That’s what happens when the world shuts down in the face of a pandemic and oil companies are left to store surplus in rented tankers.
“It’s like trying to explain something that is unprecedented and seemingly unreal!” wrote Louise Dickson, oil markets analyst Louise at Rystad Energy, in emailed comments.
Longtime commodities trader Peter Brandt tried to put the move in perspective:
As did other notable voices on Finance Twitter:
I took my eye off of oil for a second, because I thought all the fireworks kind of happened when it went negative.
But I have to admit that seeing it trade at *-$40* a barrel is quite something!! https://www.bloomberg.com/news/articles/2020-04-19/oil-drops-to-18-year-low-on-global-demand-crunch-storage-woes?srnd=premium&sref=vuYGislZ …
Why is oil price down ?
1. Corona has evaporated the demand. Air travel. Sea cargo. Road travel. Energy. Etc
2. Low demand is creating pile ups of inventories
3. No Storage facilities to keep the oil
4. Russia KSA arrogance of not cutting production EARLIER
Then there were those with an agenda:
Right now, the price of oil is negative. It’s less than worthless.
Now is the time to imagine alternatives to the fossil fuel industry. The old world has collapsed. What comes next is up to us.https://thecorrespondent.com/385/we-arent-just-stopping-coronavirus-were-building-a-new-world/50968856015-625b9768 …
We aren’t just stopping coronavirus. We’re building a new world
We must pressure our leaders to take the long view in any coronavirus economic recovery package, even if this feels like a short-term emergency.
For the most part, confusion reigned across social media:
Negative oil price… I don’t even know what that means https://twitter.com/faisalislam/status/1252303015501070339 …Faisal Islam
The Crude oil price (West Texas Intermediate)…
Has turned NEGATIVE….
MINUS $10 for a barrel of WTI oil… as they can’t find places to store it…
It’s not really a laughing matter, according to The Blaze’s Jessica Fletcher:
But, of course, the jokes were flying anyway:
And it didn’t take long for the buzz to turn political:
I thought President Bigly Dealmaker had this in hand! https://twitter.com/business/status/1252286893720551424 …Bloomberg
BREAKING: Oil drops below $3 a barrel https://trib.al/o219x5F
Donald Trump has managed to do somethin’ no other president could. Destroy the oil and gas industry.https://www.cnn.com/2020/04/20/investing/premarket-stocks-trading/index.html …
American oil crashes below $0 a barrel — a record low
The spectacular collapse in oil markets is showing no signs of easing, as the coronavirus crisis saps demand and producers run out of places to store all their excess barrels of crude.
To a guy who can bankrupt a casino multiple times, crashing the oil business is a piece of cake. https://twitter.com/business/status/1252293838795878400 …Bloomberg
BREAKING: Oil drops below $1 a barrel https://trib.al/l9YLU35
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