Published , by Asif Khan
Published , by Asif Khan
This may sound like a weird story to come out of Shacknews, but these are unprecedented times and sustainable energy consumption is a within our expanded coverage universe. The COVID-19 pandemic has many people doing their part to flatten the curve and stay home, and that has hit demand for crude oil. The May 2020 WTI crude oil contract crashed today by over 100%, which is apparently a thing that can happen. A barrel of crude oil to be delivered in May actually was assigned as low of a price as negative $40.32/barrel. That's right, negative.
Today's oil price crash is a giant signal of the weakness in demand and the vast oversupply of WTI crude oil across the world.
How can an asset trade for negative value? I am not really sure, but we sure do live in unprecedented times. The June 2020 WTI crude oil contract trades for a sligtly less apocalyptic value of $21.03/barrel. Tune in next month to see if the oversupply continues.
We have had a number of Shackers posting about today's oil price decline in our daily Finance Shack Chatty thread. Viewers of our 9to5 Elon podcast may remember my rant about shorting energy companies instead of Tesla shares earlier this year. Check it out, in case you missed it!
While a ton of money may have just been evaporated in the oil markets today, a lot of great efforts are being made globally to fight against the healthcare and economic impacts of this wretched COVID-19 pandemic. Just this weekend, Games Done Quick raised over $400,000 during their first Corona Relief Done Quick livestream marathon.
Developing...