Sunday, January 24, 2021

Tag: Negative oil crash signals economy must reopen (Video)

Negative oil crash signals economy must reopen (Video)

by Nick Cunningham, The Duran:

The Duran’s Alex Christoforou and Editor-in-Chief Alexander Mercouris discuss a historic event in the oil market, as WTI crude hit negative prices.

Oil prices crashed through zero, closing out the day at -$37 per barrel, an unprecedented meltdown.

There are mitigating circumstances to these insane numbers. The prices for WTI reflect the contract for May, which expires this week. The collapse is a reflection of traders abandoning the May contract, and moving on to June. The thinly-traded May contract loses some relevance, and analysts say that the June contract – trading at $20 per barrel as of Monday – now becomes the important number to watch.