Where are y'all seeing 0? I'm seeing between 1.30 and 4 depending on where I look
Crude Oil Prices Today - Live Chart
Live interactive chart of West Texas Intermediate (WTI or NYMEX) crude oil prices per barrel.
www.macrotrends.net
Where are y'all seeing 0? I'm seeing between 1.30 and 4 depending on where I look
The Treasury Dept will begin shipping your allotment of oil in waves over the next few months.
How accurate is that versus this:Crude Oil Prices Today - Live Chart
Live interactive chart of West Texas Intermediate (WTI or NYMEX) crude oil prices per barrel.www.macrotrends.net
What is the lifespan on oil, btw?
A couple of billion years
Thanks for this. Seems like the underlying problems are still there and June will likely see similar scenarios.Taken from: https://seekingalpha.com/article/4338551-why-wti-crude-is-crashing-much-today
The Simple Explanation
First, we need to consider what's actually being traded here. On one side, the crashing contract is traded on NYMEX under the ticker CL. Now consider the following regarding this contract:
This second item is critical. It means whoever is long the contract when it stops trading will have to take delivery of physical crude. This excludes any speculators not having somehow contracted for storage for this incoming crude. In practice, this excludes all people not professionally trading this thing at the same time as they contract physical infrastructure, including the very large ETFs which now dominate this market.
- This contract stops trading on the 21st of April (tomorrow).
- This contract is settled physically.
Now consider what the Brent contract traded on ICE actually represents:
What that second item means is that any speculator can take this contract through the end of trading and subsequent expiration. Nobody is going to find barrels of oil with nowhere to store, if he does that.
- The front-month is the June contract. It stops trading on April 30, so very comparable to the WTIC May 2020 contract.
- This contract is settled in cash.
Hence, for the WTIC front-month contract, you have extreme forced selling pressure from all the traders holding the contract which can't possibly go beyond tomorrow holding it. For the Brent contract, you have no such pressure. You also don't have such a thing for the June WTIC contract yet, simply because it doesn't stop trading for another month.
The end result is what you see.
On the buying side of the WTIC May contract, and except for those who were short the contract and can't possibly deliver crude either, you have only those who can take oil into storage. That's actually a potentially very profitable trade – to just buy this discounted oil, store it for one month, and then deliver it to the June CL buyers. However, there is a very limited public who can take advantage of this.
Conclusion
The extreme selling you're seeing in the front-month crude contract today, which will make the news everywhere today, is driven by this simple mechanism. There is extreme forced selling in this front-month contract because any speculators that can't take physical delivery have to sell these contracts today, no matter what.
This isn't happening in Brent simply because Brent crude contracts settle in cash. Thus, any speculator can take them to their expiry without being forced to sell at any price, a "luxury" not available in WTIC crude futures.
So if I buy oil futures now, it would be impossible for me to lose money?
The Treasury Dept will begin shipping your allotment of oil in waves over the next few months.
Some people on twitter are saying trading is suspended right nowSo if I buy oil futures now, it would be impossible for me to lose money?
I mean it's pretty old as it is lol
Yes, but you have to physically pick it up.Can it reach a negative number? Will oil companies have to PAY ME to take their oil?
I wonder what's cheaper.
Yea no I meant do they do something to it that limits its lifespan? Don't know much about crude post-pump. I assume it's treated and such. I know regular gas has a lifespan.
I tried Pawn Stars but they only gave me $. 1 and Rick said he still needs to make a profit.
Yes. Canadian crude is trading negative as we speak.Can it reach a negative number? Will oil companies have to PAY ME to take their oil?
how does a normal person profit off of this
are we even allowed to