The main points:
▪️This is not oil itself, but May futures with physical delivery.
▪️Vaults are full and oil is nowhere to store, so speculators get rid of pieces of paper.
▪️ Tomorrow, prices will return by $ 20 +, as tomorrow will be June futures.
WTI is Texas oil. What you see is NOT the price of a product. These are the futures for May. This is a piece of paper, if you bought it in May you would have received directly the oil itself. In May, this oil is no longer needed by anyone, it simply has nowhere to store it (since, basically, WTI is consumed in the USA itself, and the storage facilities are full there).
These are big losses for oil producers from Texas, but believe me, the White House will not leave them in trouble (there are various rumors about the support of the shale).
A little secret: tomorrow you will see a sharp jump in prices for WTI (and on some exchanges you can see it today), because tomorrow on the charts futures will be updated from May to June, and WTI will return to $ 20 per barrel.
Once again, WTI charts are the prices for May futures. First of all, traders who are now merging these securities suffer in order to avoid delivery costs. And we’re ready to pay extra for you to accept black gold in May.
And so far, in theory, the trader who bought the asset is even ready to pay more than $ 30 per barrel, so that you only redeemed its oil, which has nowhere to go. So if you have an empty oil storage in your village, you can earn 😂.
Meanwhile, the non-futures oil BRENT $ 28 per barrel.
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Really enjoying your work, if you haven't noticed from my comments starting to appear on all of your articles! I've already subbed, too.
The WTI is the same "West Texas Blend" that went negative in price (sub-zero) for the first time in history last week? Of course, that was due to a myriad of conditions that acted like a perfect storm, from reduced fuel demand due to worldwide restriction of free movement coupled with the general market crash that occurred due to the same, then finally combined with the OPEC+ cartel's price war that is still raging today, albeit with some cuts in production promised.
All that being said -- even with the decline in contracts I have seen since the crisis started, it still made me slap happy to fill up my large family vehicle for under $30 bucks.