BC Sport Bikes Forum banner

1 - 6 of 6 Posts

·
+ 39.9 km/h
Joined
·
1,518 Posts
Discussion Starter #1
Yesterday the May 2020 WTI Crude futures contracts about to expire went to negative (-$37.63US)!
It makes no sense, but the contracts are paying you $37.63US a barrel to take delivery.

Life today, makes this old BCSB closed Oil thread look GOLDEN!
 

·
Wanderer of the Wastes
Joined
·
6,806 Posts
quick! -someone start a war!

nothing else gobbles up global oil supply, and drives the price up... like the ravenous dogs of war...
 

·
license to chill
Joined
·
2,863 Posts
Super interesting to follow, but makes total sense.
Futures contracts are at the end of their cycle so if your name's on the paper you are accepting delivery. Great - free oil!
The catch: after you fill up your basement you'll have nowhere else to put it. Every storage facility was full long ago so someone got the idea to hire out tankers to wander around aimlessly with their oil. $165k per day is a lot to pay for a free lunch.
 

·
+ 39.9 km/h
Joined
·
1,518 Posts
Discussion Starter #4
This is better than free.
Instead of a pile of logs with a sign saying "free fire wood" they are paying you to take it.

The logic is it's cheaper than shutting off the oil production, the time value of oil money has gone negative.
 

·
Wanderer of the Wastes
Joined
·
6,806 Posts
1 - 6 of 6 Posts
Top