"The headline number that everyone is freaking out over is the front month contract. Right now that's the May contract. Trading in this contract will end tomorrow, April 21, and delivery of physical crude will be in May.
In the normal course of events traders holding this contract about now would be selling it to someone will to take physical delivery and then roll the income from that sale into a later contract.
RIght now, however, no one wants to (or is able to) take physical delivery. Storage is near full. So no one want this contract, hence the crash in pricing.
On Wednesday the headlines will report a 50% jump in crude prices because the headlines always refer to the front month price. And on Wednesday the front month contract will be the June contract.
As for USO, they try to hold the front month contract, but they don't hold it to the very end. This month, USO started to roll to the June contract on 7-April and were done by 13-Apr. So they missed this crash.
Also, note that because USO has gotten so big they are no able to hold all their assets in the front month contract. It would violate exchange rules. Going forward USO will hold only 80% in the front month and 20 % in the next month."
How long before people start dumping the oil they have into rivers and get paid to replace it?
Michael Butler
So are tanker/storage companies still even viable at this point?? Would these oil companies have already tried to sell/ship/store prior to this happening?? Are tankers and storage already full? AHHHHHHHHHH
Wyatt Rodriguez
it's not open to buy for normies
Chase Hughes
Is there video footage anywhere?
Jackson Kelly
OH SHIT, MARKET STRUCTURE ISSUES CAUSED THIS.
FLASH CRASH
Cooper Robinson
Just buy barrels of oil. Literally infinite money, I’m up 3 billion dollars today from that one simple trick
Andrew Cook
So, what prevents US for getting paid to get the delivery, and fly off to some other country with the money?
START INVESTING IN FUCKING WEAPONS AND AMMUNITON, ITS LITERALLY OVER >START INVESTING IN FUCKING WEAPONS AND AMMUNITON, ITS LITERALLY OVER START INVESTING IN FUCKING WEAPONS AND AMMUNITON, ITS LITERALLY OVER
Chase Collins
Possible we will see XOM go below $40 or is this priced in?
lol CME is going to fix this issue so it never happens again better take advantage of it now
Christopher Perry
market broke
Bentley Price
>Just walk into a refinery and ask them to give you all of their oil for 50 million dollars. >Tfw they'll happily take this deal and thank you for doing this.
OH NO NO NO NO NO...LOOK AT THIS DUDEEEEE...HAHAHAHAHAH
Mason Butler
Why would war help this? As I understand the US goes to war to get oil, what are they going to do just dump their oil into some third world shithole? I would think this would just result in an expansion of storage and oil based manufacturing companies.
Blake Campbell
sco puts
Julian Williams
GUNS
James Murphy
Because the middle east gets fucked by this not the west
Proof that many of these futures traders shouldnt be there to begin with. It's how the big companies pump prices by using retail investors and when they need an escape they dump it on retail.
Lucas Myers
HELP
HELP
HELP
JEROME
JESUS
SOMEBODY HELP
Ian Barnes
CME will never let this happen again. They are investigating the issue
Blake Sullivan
We're going to war, user.
Nathan Bailey
WHERE IS THE LINK
Parker Adams
LET THE BARRELS HIT THE FLOOR
Grayson Martinez
Yes, you got paid $40 per barrel, and you paid $28 to sell it off, you made $12 per barrel.
HOW I SHORT AMERICA? AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA
Jordan Diaz
oil is ogre frens
Parker Ramirez
There was a few days without a power hour pump. I would not count on the pumps on any day but Friday or after a big dip.
>retard tier all oil is free >midwit tier you retards don't understand rollover its a nothingburger >big brain tier june contracts are also doomping you retards
Jonathan Butler
TRUMP SUICIDE LIVE ON TV TODAY, SCREENCAP THIS
Elijah Carter
FUCK I BLEW IT THIS IS NOW WHEN I SHOULDVE GONE SRTY IS IT?!?!
?
Also these are the worst anchors Tyler and Kelly are garbage, only other worst one is John fort.
Mom is kicking me out of the house She wants 500$ a month in rent and I have 1,000,000 barrels of cruide oil and negative 220$ in my checking account. I showed the dumb bitch where Cruide Oil's price is right now and she knew where it was before. She's at her wits end with me and I told her to just give it 3 more months, but she isnt having it. She took away my XBOX too and I'm in South Dakota where there is nothing else to do but play Halo 3. Should I pay here 890.000.000 barrels of cruide oil instead? Shes telling me to go work in an oil field but I dont want to be killed when we are so close to the bottom. Any South Dakota OilChads I can stay with for the summer? I'll give you 10.000 barrels a month. Or should I just hit the fat bitch over the head with a frying pan?
I love how all of these experts have absolutely no answers for this.
Christopher Reed
Don't you watch CNBC user? The market broke, something is broken, it doesn't make sense. I don't know how to explain it any clearer
Parker Morris
OIL IS A CRYPTO CURRENCY
Nathaniel Smith
>this continues and fucks up the June contract. I don't see why It wouldn't. how long can oil companies maintain solvency? Even if all the jewish governors and trump stopped restricting everything the amount of oil vs demand is going to put companies out of business or at least it should without continuous bail outs and even with bail outs tons of people will be losing their ass.
Nicholas Stewart
>-20% is no big deal
Charles Gray
When he said that the metal in the barrel is worth more than the oil because we can all crawl inside and go over Niagra Falls I suspected he lurks here
Ryan Cooper
How much more will BA tank? Might try to pick up some cheapies.
hello boomer stock gen. what stock to buy with oil crashing?
Samuel Flores
>no one wants to buy the May contracts to exercise them so they're worthless but what about the people that literally bought?
Michael Mitchell
all oil is negative but WTI may futures are the apocalyptic collapse tier ones
Easton Murphy
USO price is reflecting the June and July contracts. They already unloaded their May contracts last week
Jayden Cox
WHAT THE FUCK DO I BUY BEFORE THEY PUMP
Dominic Brooks
When oil is negative, just buy another billion barrels and they'll pay you to take it. Then have it delivered to Florida where it can be dumped into the Gulf of Mexico to feed the fishies.
Jose Gonzalez
What does this mean for stocks? Should I just sell everything, hold cash, and hide under my bed?
Dude USO looks hella fuckin sweet rn bros, all it has to do is go over 20 next month and we will be rolling around in pure money
If you want to reply with contango don't even at me bitch I am deep in the hopium
Wyatt Smith
zombie apocalypse next
Cameron Fisher
this nigga bought oil
Jonathan Cruz
CME IS INVESTIGATING POSSIBLE MANIPULATION >CME IS INVESTIGATING POSSIBLE MANIPULATION CME IS INVESTIGATING POSSIBLE MANIPULATION >CME IS INVESTIGATING POSSIBLE MANIPULATION
Have fun being on the hook for transporting and storing millions of barrels of oil.
Alexander Miller
That make any long term investment in oil ETF difficult. >current oil indexes You know what you're talking about? It won't ETFs doesn't work this way
Jace Bell
>just let me die
Evan Garcia
>when she deepthroat so hard you can see your dick come out the other side
Josiah Morgan
LMAO THE FUCKING COPE
Justin Young
hey bud, i know it feels good to think that, but please research how USO works. oil needs to be at about $30 for USO to even get up to $5. or something like that, I don't remember because i found it very disheartening when I looked into it. have a nice day.
