Oil prices closed today at an all-time low of -$37.63 a barrel as demand for crude oil has plummeted around the world.
What does this mean? Well, they aren't giving away barrel of oil if that's what your thinking, but today's final price for crude oil is not only the lowest ever but is a 300% single day decrease.
As consumers already are experiencing cheap gas prices, we can imagine the prices will continue to drop. But let's not get ahead of ourselves here.
If you are still trying to grasp the total effects of Coronavirus then this is your moment. Today the global market for oil tanked because speculation on future demand for oil currently sits at zero.
Nations around the world have been busy filling up their reserve and people have been busy staying put. And not just in New York, or Rome, but just about everywhere.
just to be clear, i also absolutely understand how oil prices work and what it means—shocking stuff (that i have a firm grasp of)— Ashley Feinberg (@ashleyfeinberg) April 20, 2020
#OilPrice going negative for 1st time in history! Now -$25 for #May cash delivery because there is nowhere to store it & no one’s using it with planes parked & #stayathome orders! #Oil trades at prices in #July #August— Susan Li (@SusanLiTV) April 20, 2020
While #November #crudeoil contracts at $37 ⛽️ #oilcrash pic.twitter.com/xfjzOvzAvs
The May futures contract price went negative, because of a lack of buyers. If they can't unload those contracts by tomorrow, they must take delivery. Speculators never planed to take delivery... so they're panicking. WTI crude is actually trading around $22 #OilPrice— Veteran Market Timer (@3Xtraders) April 20, 2020