U.S. crude oil prices dropped more than 100% and turned negative for the first time in history on Monday as traders continue to fret over a slump in demand due to the coronavirus pandemic.
A new day, and a new crisis as the coronavirus plannedemic shames the US crude oil market into oblivion, turning its value to negative for the first time in history. This coming mere months after the United States had
just surpassed Saudi Arabia as the world's largest oil producer and exporter. Hey, that's a coincidence, you don't that that....nah, couldn't be. Nothing to see here folks, get back into quarantine.
"The field is wasted, the land mourneth; for the corn is wasted: the new wine is dried up, the oil languisheth. Be ye ashamed, O ye husbandmen; howl, O ye vinedressers, for the wheat and for the barley; because the harvest of the field is perished." Joel 1:10,11 (KJB)
By the time the global lockdown is lifted, and we all run back out into the streets, don't be surprised what's waiting for you when you get there, it won't be pretty. The lockdown will continue until everything it was set up to destroyed is destroyed, and not a moment sooner. The world's economy runs on two things, crude oil and the American dollar. When the United States magically produced a $2 trillion dollar 'stimulus', it lifted the curtain on what a fraud the US dollar actually is. So that killed the dollar. Now we are watching the
New World Order strategically dismantle the oil market as well.
At this rate, the only 'money' that will have any value will be digital currency. Good thing Microsoft already filed
a patent on an implantable device to buy and sell cryptocurrency, isn't it? Golly gee, another wild coincidence. Now do you see
why the Church will not be in
any part of the time of Jacob's trouble? We would give the Antichrist fits, calling all his shots
before he makes them, thanks to the infallibility of our dusty, old and archaic
King James Bibles. Your KJV, sharper than Damascus steel, is more up-to-date than tomorrow's newspaper. These are the tools with which we shall wage our warfare. To the fight!
An oil futures contract expiring Tuesday turned negative as demand for crude collapses
FROM CNBC: The price of the nearest oil futures contract, which expires Tuesday, was the hardest hit, detaching from later month futures contracts with a drop of more than 100%.
West Texas Intermediate crude for May delivery tanked more than 130% to trade at negative $6.75 per barrel. Meanwhile international benchmark,
Brent crude, which has already rolled to the June contract, traded 8% lower at $25.83 per barrel. The June WTI contract, which expires on May 19, fell about 15.7% to trade at $21.1 per barrel. The July contract was roughly 5% lower at $28 per barrel.
The front part of the oil futures ‘curve,’ which is the May contract that expires on Tuesday, was hit the hardest since it applies to fuel that’s set to be delivered while most of the country remains on lockdown thanks to the coronavirus. The only buyers of oil futures for that contract are entities that want to physically take the delivery like a refinery or an airline. But storage tanks are filled so they don’t need it.
The spread between the May and June contracts — known as the front month and second month — is now the widest in history, according to KKM Financial’s Jeff Kilburg. “This is a phenomenon due to the expiration of the front month contract coupled with the historic plunge in crude,” he said in an email.
“There is still a lot of crude on the water right now that is going to refineries that do not need it,” Helima Croft, global head of commodities strategy at RBC Capital, said Monday
on CNBC’s “Squawk Box”. “Right now we don’t see any near-term relief for this oil market … we remain really concerned for the outlook on oil near-term,” she added.
The coronavirus pandemic has dealt a severe blow to economic activity around the globe and sapped demand for oil. While OPEC and its oil-producing allies finalized a
historic agreement earlier this month to cut production by 9.7 million barrels per day beginning May 1, many argue that it still won’t be enough to counter the fall-off in demand.
“The real problem of the global supply-demand imbalance has started to really manifest itself in prices,” Rystad Energy’s head of oil markets Bjornar Tonhaugen told CNBC in an email. “As production continues relatively unscathed, storages are filling up by the day.”
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