That oil is scheduled for delivery tomorrow, at which point the oil price ticker will update to reflect futures for June delivery which is currently at $22/bbl.
Because there is a physical reality to this. The contracts crashed because there was literally no room for deliveries. Commodities are not like stocks where its just paper. this market represents a physical exchange of goods that goes with it.
Somebody somewhere is sitting on a ton of oil right now that is not moving
Fake News.
That oil is scheduled for delivery tomorrow, at which point the oil price ticker will update to reflect futures for June delivery which is currently at $22/bbl.
Then the gas stations will raise prices at the pump because the price of oil went up hundreds of percentage points in one day!
Exact. Many oil companies will also use this as an excuse to lay off millions of employees even though they are the ones getting paid to take the oil.
while that is very true, im not sure this is the end of the story
How so?
Because there is a physical reality to this. The contracts crashed because there was literally no room for deliveries. Commodities are not like stocks where its just paper. this market represents a physical exchange of goods that goes with it.
Somebody somewhere is sitting on a ton of oil right now that is not moving
A lot of people really don't seem to understand that. Alos, all the oil that is sitting in stockpiles right now is grossly overpriced.
This book ends at exactly midnight tonight, but their could very well be a sequel 30 days from now.
A month ago today's barrel was $25. Now it's -$40.
Currently the June barrel is $20. What's it going to be in a month with all of this cheap supply everywhere?