We have seen negative crude oil for May contract because there is no place to store oil.
You think it may happen the same for June contract? Well, It cold if coronavirus lock down is not going to be over soon, globally. However, we see some countries are trying to get back to normal , step by step, so I assume June will be different.
1 Million Euro expenses and demand dried out that's the whole story
ew-forecast
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@Deevog, yes, but wanted to highlight why it went negative
Deevog
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@ew-forecast, Because they can't store anymore and demand is less , and their expenses per day high it makes this price negative , an empty truck drive cost to owner
this is also because is leveraged contract and of massive liquidation
Olu
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Excellent explanation
monguilhot
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O dont think that... Some one brought the barrel at negative price... and was not us...
TomPower
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I am long the USO and it is down some 20% today what the hell is going on?
Wave_Control
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Good explanation. Imagine it, the seller paying the buyer to take oil off their hands. Unprecedented situation. I'll be paying particular attention to the June contract.