
US oil prices crash below $0 a barrel - doener
https://edition.cnn.com/2020/04/19/tech/global-stocks/index.html
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dang
[https://news.ycombinator.com/item?id=22923025](https://news.ycombinator.com/item?id=22923025)

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united893
This is not the real price of oil. It's just a long squeeze -- an unfortunate
side effect of the USO ETF as its rolling its holdings into the next futures
contract.

See:
[https://www.bloomberg.com/opinion/articles/2020-04-20/there-...](https://www.bloomberg.com/opinion/articles/2020-04-20/there-
s-nowhere-to-put-the-oil)

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BozeWolf
Absolutely a great newsletter to subscribe to. Really well written articles.

The current situation is really well explained. Basically contracts which make
you owner of oil end tomorrow. you have to store it somewhere then. or sell
the contract quickly for -37$ before the market closes. Article for more
details.

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damon_c
Maybe we can start running the wells in reverse and start putting it back.

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riskneutral
If that were possible the price wouldn't be negative. Leaving it in the ground
is in fact the cheapest storage option.

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ineedasername
It's counter intuitive to have negative prices, but I think this sums it up
nicely: _" If you have a thing that lots of people want, but that no one wants
right now, it is hard to put a normal price on it."_[0]

[0]
[https://www.bloomberg.com/opinion/articles/2020-04-20/there-...](https://www.bloomberg.com/opinion/articles/2020-04-20/there-
s-nowhere-to-put-the-oil)

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billfruit
Is this something localised, because Brent is still at 28 dollars.

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masonhensley
May 2020 futures contracts for WTI (that expire tomorrow)

I'm oversimplifying it... there is so much more supply than demand that groups
that can't take physical delivery of a contract (no space) and are paying to
have it taken off their hands.

Better discussion here:
[https://news.ycombinator.com/item?id=22924321](https://news.ycombinator.com/item?id=22924321)

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akmarinov
Hey, I’ll take some money to store a couple of barrels

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overcast
-$37.63. Welcome to Thunderdome.

