Tag Archives: WTI Crude Oil

Why WTI Crude Oil traded at minus -$37?

The price of West Texas Intermediate crude oil futures expiring in May plunged 321%, to -$40.32 a barrel

Why WTI Crude Oil traded at minus -$37?

Imagine the following…you pay $500 today and commit to receiving an escort at your house in 15 days. Cos your wife is traveling. This is called a futures contract.

Unfortunately, lockdown came and your wife will be home for the next 60 days.

You do not want this woman to show up at your house at all and try to pass this futures contract to someone else.

Only you cannot sell this commitment because nobody can receive the escort at home anymore. Everyone is in full storage (their balls) with wife.

To make matters worse, not even the pimp (Chicago Mercantile exchange) has more room to receive girls because his house is crowded with girls.

Now, just a day left before the escort is about to come to your house, what do you do?? You will pay anyone just to take the girl off your hands!!

Now, do you now understand why oil has a negative price when the contract is about to expired?

[Post-edited. Original Source: Unknown.]

The price of West Texas Intermediate crude oil futures expiring in May plunged 321%, to -$40.32 a barrel

The price of West Texas Intermediate crude oil futures expiring in May plunged 321%, to -$40.32 a barrel

The price of West Texas Intermediate crude oil futures expiring in May plunged 321%, to -$40.32 a barrel. Oil plunged into negative territory for the first time on record.

  • Prices plunged to a record low and into negative territory on Monday as uncertainty mounted about storage for excess supply.
  • WTI crude oil futures expiring in May plunged 321%, to -$40.32 a barrel, while Brent crude slid 9.5%, to $25.41 at super lows.
  • The coronavirus pandemic has torpedoed demand for the commodity, with fuel use in cars and planes slumping.
  • The commodity has fallen over the past week even after OPEC and its allies agreed to a historic production cut intended to backstop prices.
  • The WTI market has entered contango, meaning spot prices are lower than prices for future delivery of crude oil — a highly unusual occurrence.

Based on Market Insider News.

World Crude Oil price decreased will leads to Malaysia Petroleum price too. Hope this condition do not last long.