Traders recount a historic week in the oil market that saw prices dip into negative territory for the first time ever, and where they see prices headed.
. Before Monday, many thought this was impossible. Maybe, just maybe, it could drop to zero, effectively erasing all value. But negative territory seemed unimaginable, not least because it's hard even to wrap one's mind around it. Pay someone to take your oil?
Everything came to a head on Monday. WTI has a physical settlement, meaning that as the monthly contract reaches expiration, whoever holds the contract is due a physical barrel of oil. Traders, in an effort to profit from the differential, buy and sell contracts without any intention of holding them at expiration, while refiners and airlines are among those on the other side who actually want the oil.
Negative prices themselves are also not completely without precedent. Natural gas, for instance, has traded below zero in the past, and in the physical market certain regional grades of crude were already trading in negative territory prior to Monday. And there were some traders who warned that, as storage filled, prices would continue to decline dramatically.
It turned out that $17.73 would be just a few cents shy of Monday's high. By midnight eastern time WTI was trading in the $15 range. Selling continued in overnight trading, and at 8 a.m. prices had slipped to $11. Just after noon, prices dropped into the single digits.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
The Best, Unique, And Funniest Gifts | Scary Mommy Shop | Scary MommyThe Scary Mommy Shop is a curated list of best products and gifts for any occasion, hand-selected by editors at Scary Mommy, a community of millions of moms supporting each other through laughter, empowerment, and the shared experience of motherhood.
Baca lebih lajut »
Goldie Hawn and Kate Hudson Reenact Each Other's Iconic Movie Lines: 'This Is Scary'Goldie Hawn and Kate Hudson recited iconic movie lines from each others' films for PEOPLE's Beautiful Issue
Baca lebih lajut »
Scary Stories to Tell in the Dark Will Get a Sequel at Paramount'Scary Stories to Tell in the Dark' will get a sequel at Paramount. horror horrormovies scarystories
Baca lebih lajut »
As popular oil ETF plunged to single digits, retail investors rushed to buy the dip (USO)When popular oil ETF USO plunged to single digits as oil prices turned negative earlier this week, retail investors piled into the ETF, trying t...
Baca lebih lajut »
Power Line: Why oil prices went negative, in 3 levels of detail - Business InsiderThis week, we lay out who wins when oil prices go negative, share tips on oil investing from a big bank, and explain why renewable growth won't stall.
Baca lebih lajut »
Oil spikes 9% as market rebound puts negative prices in rear view | Markets InsiderWest Texas Intermediate crude oil tore higher for a second straight session, jumping as much as 9% to $17.95 per barrel on Friday. Brent crude, ...
Baca lebih lajut »