Oil price: Why the price could become negative! Video outlook (german)

Yesterday, something historically unique happened. The price of WTI oil (May contract) fell below the 0 Dollar mark (the May future was at a low of -40 Dollar)! But how can something be worth less than 0? This has to do with the currently very exceptional conditions of the corona crisis (oil demand collapsed). It also has to do with the distress of mostly ignorant private investors who obviously did not realize the scope of their oil investment. But if the oil price does not turn around soon, many countries and oil producers will be in a tight spot. “Credit events” (in effect, insolvencies – causing bondholders and banks to write off their loans to oil companies)! In view of these circumstances, the stock markets are still holding up very well.

Please follow and like us:

Be the first to comment

Leave a Reply

Your email address will not be published.