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Bitduke
Apr 20, 2020 8:19 PM

CL1! - Oil plunges below zero for the first time in history 

Crude Oil FuturesNYMEX

Description

OK, just one more chart about oil because it is a historical event (and could(!) affect crypto market as well somehow).

Looks like it settled at ~$35, experienced 325% drop for today.

Why did it happen? I think due to coronavirus and lockdowns oil isn't being used much. But it needs to be stored somewhere and it costs money.
And there's a lot of oil in storages and most of facilities are full. So nobody who can store it will buy it from you. If you want to get rid of oil, you have to pay someone, that's why price turns negative.

Don't pretend to be an expert just my take on this situation.

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Information is just for educational purposes, never financial advice. Always do your own research.
Comments
emobe
Specifically this is the inland oil in Texas where they have no room, unlike an oil rig
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