West Texas futures for May delivery settled at -37.63 dollars a barrel on April 20, marking the first negative trading since futures began trading on the New York Mercantile Exchange in 1983.
Next, small make up to introduce why is it negative?
U.S. President Donald Trump says the fall in oil prices will be very short-term;
Negative oil prices reflect financial market conditions, not oil market conditions.
Now is a great time to buy oil. Hope Congress will support it.
Up to 75m barrels of oil are being studied for inclusion in the Strategic Petroleum Reserve;
Views on stopping imports of Saudi oil will be considered.
Asked if Opec + would increase production cuts, Mr. Trump said it had done so.
What does a negative oil price mean?
It means that the cost of shipping the oil to the refinery or storing it exceeds the value of the oil itself.
However EVERYBODY MUST NOT misUNDERSTAND, THIS IS FUTURES ONLY, NOT SPOT PRICE, negative NUMBER DOES NOT REPRESENT EVERYBODY AFTER REFUELLING FOR FREE RETURN DROP STICK MONEY.
Although oil traded negative in May, it is still trading above $20 in June.
The global benchmark is still trading at more than $25.
It closed at $18.27 a barrel on Friday, down more than 300% from its low for the day.
The market reaction shows that Opec crude oil production agreement, Russia has just enough to cope with the new crown pneumonia outbreak caused by the global spread of demand, while U.S. stocks surge hit record highs, into the summer looming in the problem of oil storage facilities used to further make the market lose faith in the crude oil price in recent months.
In addition, as the May delivery date approaches, there is often a jump in prices as futures contracts move from one position to another.