The price of oil for futures contracts in May absolutely tanked. To the point, the price of a barrel closed -$37.63 on the day. Future sellers are paying buyers at that pricing to take the contract.
That's insane, what is going on?
The formerly unthinkable drop in oil prices below $0 a barrel on Monday is still reverberating through financial markets, as supply overwhelms demand destroyed by the coronavirus pandemic, forcing some energy companies into possible bankruptcy as storage reaches maximum capacity.
Indeed, the now-defunct May West Texas Intermediate crude US: CLK20, which expired on Tuesday, plunged into negative territory to start the week in a history-making event that saw, the front-month contract, at the time, settles at negative $37.63 a barrel before recovering some of that in the following session.
That jaunt into negative territory had never happened before that period and although the oil market was seeing some traction higher on Wednesday, with the current front month and most-active West Texas Intermediate crude for June delivery CLM20, +22.99% up to $2.76, or 23.9%, at $14.33 a barrel, still about the lowest level since the late 1990s, researchers at Deutsche Bank thought it would be interesting to look at oil prices over the past 150 years.
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