NEGATIVE PRICE FOR OIL? HOW IS IT POSSIBLE? Oil crash explained in 3 minutes
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- Опубликовано: 15 сен 2024
- 😮OIL PRICE -40$! 😭
How is it possible to have a NEGATIVE price for oil? Is the industry over? What is going to happen next?
Let’s try to understand this next chapter of the #oilcrisis saga in just 3 minutes.
WANNA KNOW WHY OIL HAS JUMPED FROM $ -40 to + $20? here is the video:
• OIL PRICE HAS JUMPED +...
I hope you’ll enjoy the video if you wanna know more and support me, check and subscribe to my Channel!
As always
FAI A MODINO
Let’s connect on Instagram and LinkedIn as well:
INSTAGRAM: / talesofstartup
LINKEDIN: / pietrogalli3
Thanks for the video! That made much easier to understand. Please do explain how it went from -$35 to $35 dollars only in a few hours and why the other barrel prices like Brent weren’t as much affected with this drop from WTI barrel price.
Ciao Isa!!! The key is the expiration date of the contract.
For MAY contracts the expiration date was April 20 which means that after yesterday you cannot sell those barrels to anyone and you actually must go and get the physical oil.
At the same time, you can trade the oil price for each month of the year with its contract (for example right now the price for a barrel of oil in December is about $35).
Yesterday you had MAY contracts collapsing but at the same time, June contracts were around $20, July around $25, etc...
After yesterday MAY contracts were closed and to see the oil price we started to look at JUNE contracts that were and still are around $20-30.
That's how this happened: we passed from looking at the price of MAY contracts to look at the price of June.
Usually, the difference between one month to another is very little, like a few cents. But these are not normal times and we can have this paradox where one contract closes negative and the one of the next month is still positive.
Note: June contracts close on MAY 19, let's see if on that date we'll have another collapse similar to the one of yesterday...
@@pietrogallitalesofstartup2024 Excellent! That's very helpful, thank you!!
Oh and btw part 2 coming soon answering that question in a better and simpler way (I hope)😅
That's crazy!!! Thank you for the simple and very understandable explanation
Thank you for your support form day 0!! Bella Kappa!!!
thank you for making that simple and understandable. Looking forward to learning more. . . .
Hey Rachel Thank you so much for your support, I'm actually editing part two right now to see how it's possible to go from -24$ to +20$ and the "trick" that lies behind it.
Thanks again for your words
Thanks for the explanation.
What if Wolf did not sell the contract and did not collect the barrels from Chuck?
Nice point Matthieu! There would have been consequences, not just fees but also severe legal actions... Then I don't know if it can also affect your eligibility to keep on trading, I'm not sure on that
Awesome! Thanks for the insight Pietro😃
Thank you so much for your support, my pleasure! If you're interested I'm coming out with part two where we'll see how is possible to jump from -20 to +40$ a barrel :)
All the best!
Thanks for explaining in such a way that was easy to understand the situation.
Hey Iramar Thank you so much for being supportive! I'm glad you enjoyed it, can't wait for the next one coming!
(Even though the speculators would never buy real goods but just speculate on them) Wouldn’t it be easier for a speculator as Wolf to just go there, buy the barrels and sell them to “Joes” from other countries? Or just stock them until the oil market recovers from the crisis?
The problem is exactly that one. No one wanted to buy and April 20th Was the last call to sell those contracts otherwise he needed to get them, no way. The problem of stocking them is very practical like:
Where do you stock them?
Do you have the facilities? Do you have the certification to handle that material, the stocking place is good enough or will make the oil go rotten?
And many other practical things that make it impossible for Wolf to actually get the oil, plus stocking has a price and how knows for how long he would have to pay that before being able to sell it again...
Un po' una situazione del c***o per Wolf ecco xD
Hello! Many thanks for the fantastic video... i better understand now how come oil barel cost can be negative... but what is happening now is only in US, right? I mean the negative cost of oil.
No, THANK YOU, for the support Bika!
Fantastic question, what has happened was for the price of WTI (a type of American oil) that will be delivered in May.
How this work and why we could see a similar situation happening on May 19th is the subject of the next video, where I'll go through how this kind of contracts work.
I'm editing the video right now and in few hours I'll upload it! On Instagram I'm posting a little preview in case...
Hope it will be useful and thank you again for your support!!
Please make that video
Coming out tomorrow 😬Thank you for your support Catherine
Come diceva il grande Francesco Nuti (Donne con le gonne) C'È L'OLIO!
A sto punto vale più quell'olio lì del petrolio xD
I really want to know how the oil moved from -$40 to $20
Catherine thank you so much for your support! I'll do my best to make that video, unfortunately, I think I'll need a couple of days now cuz I haven't slept last night to make this one so I don't think I'll be able to shoot part 2 today.
Anyway if you know the reason now just shot me a DM on Instagram (@talesofstartup) or a message on LinkedIn (Pietro Galli) and I'll text you :)
Again thank you for your support!