Price of oil crashes, goes negative
The beatings will continue until morale improves: Due to the crash in demand due to the government-imposed Wuhan panic shutdowns, oil producers, who can’t turn off their oil wells, have run out of storage space and are now forced to pay others to take the oil off their hands, thus sending the price of oil into negative numbers.
Physical demand for crude has dried up, creating a global supply glut as billions of people stay home to slow the spread of the novel coronavirus. West Texas Intermediate crude for May delivery fell more than 100% to settle at negative $37.63 per barrel.
Meanwhile, international benchmark, Brent crude, which has already rolled to the June contract, traded 8.9% lower at $25.58 per barrel.
While this crash is indicative of the entire crash of the economy, in the near long term it might be a good thing. If the government ever decides to release us from house arrest and people decide it is time to go back to normal, the low price of oil will help stricken businesses get back on their feet.
Then again, there is a very big “if” in that last sentence. I see no indication that our fascist state governors, especially in states run by Democrat governors, have the slightest interest in ending the shut downs. They like the almost absolute power it has given them over everyone, and that absolute power is corrupting them quite effectively. They might be making noises about “easing” the restrictions, but that is only political dishonesty. The bottom line will remain: They are now in control of everything everyone does, and have the right to give or take, as they please, whenever they please.
The beatings will continue until morale improves: Due to the crash in demand due to the government-imposed Wuhan panic shutdowns, oil producers, who can’t turn off their oil wells, have run out of storage space and are now forced to pay others to take the oil off their hands, thus sending the price of oil into negative numbers.
Physical demand for crude has dried up, creating a global supply glut as billions of people stay home to slow the spread of the novel coronavirus. West Texas Intermediate crude for May delivery fell more than 100% to settle at negative $37.63 per barrel.
Meanwhile, international benchmark, Brent crude, which has already rolled to the June contract, traded 8.9% lower at $25.58 per barrel.
While this crash is indicative of the entire crash of the economy, in the near long term it might be a good thing. If the government ever decides to release us from house arrest and people decide it is time to go back to normal, the low price of oil will help stricken businesses get back on their feet.
Then again, there is a very big “if” in that last sentence. I see no indication that our fascist state governors, especially in states run by Democrat governors, have the slightest interest in ending the shut downs. They like the almost absolute power it has given them over everyone, and that absolute power is corrupting them quite effectively. They might be making noises about “easing” the restrictions, but that is only political dishonesty. The bottom line will remain: They are now in control of everything everyone does, and have the right to give or take, as they please, whenever they please.