Someone who understands economics explain to me what's going on like I'm 5

Everywhere that can store oil is full and no one is using oil so no one is buying oil. The oil drills dont turn off, the pressure would burst the pipes so the oil MUST flow. But theres nowhere to put it. They are now giving people discounts to buy the oil, store it, and put it somewhere.

But they cant find buyers because everywhere is full.

hey as long as saudi fags don't get to shit on insta hoes anymore and those hoes go out of business I'm happy

nothing, this means literally nothing, everyone is overreacting because they're either bored or stupid

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I produce oil, I sold one contract to some reddit fag for 30$. after two weeks le reddit cannot accept delivery so he has to sell it. Whoops, no one wants to buy. Reddit has to sell for -30$

It's oil futures. People bought at low price last month thinking to make big money. Now it seems there is no demand for this oil they are having. Now the people are getting the crude oil barrels delivered to their doorstep. But they cant have that so price dropped hard. Even below zero because they dont want that shit in their backyard being useless and pay the delivery cost of it.

I'm a banker and don't actually come on Yas Forums, so you can trust me more than anyone else here.

Futures are a simple financial derivative where one party agrees to buy something from another, at a predetermined price and predetermined future price. In this situation, people were holding oil contracts to buy at x price in may, but that price was estimated 6 months+ ago and is obviously grossly overestimating the actual oil price today.
The thing about financial derivatives is that if you think things are going south, you can actually cut your losses and sell your position to someone else who is more hopeful. Usually this results in a loss, but you're still able to exit and come out ahead compared to if you had gone through with the trade.

What happened here is that the actual price of oil dropped so far so fast that people holding contracts to buy would rather pay someone to take that position from them than go through it, because they stand to lose a lot more that way.

It's a big deal in that it happened, but this is not a technical marvel that should surprise everyone that is even possible. Also, the price of oil itself is not negative and you will not be paid for buying oil.

were you molested as a 5 year old? if so this will be easier to explain

>don't actually come on Yas Forums
>comes on biz

>The oil drills dont turn off, the pressure would burst the pipes so the oil MUST flow.
Time for flaring

just to see what's going on here with the big news (blown out of proportion)

How do I make money off of this?

it's too late to make money off of the contracts expiring in may. You can take your chances and buy a contract expiring later into the future though, but keep in mind you run the risk of being in a similar situation to what's happening currently.
Personally I think investing in derivatives with your own money is really stupid, and I only do it with other people's money.

This.

So your mom's allowance then

retards that think it's a good idea to leave their money to a financial advisor or a hedge fund deserve to have their money dumped in risky investments and get sub par returns. Never a good idea to do it with your own money at stake though.

Daddy Vladdy just stuck his fist up every Arab and American shaleniggers asshole

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Yeah oil prices literally don't matter haha

fuck off

>The oil drills dont turn off, the pressure would burst the pipes so the oil MUST flow.

what the fuck who designed this fuckin shit sounds like an engineering disaster waiting to happen

Economic warfare by OPEC to destroy the US fracking industry. This is an act of war. Prepare for what's coming, OP.

found the brainlet who needs to live vicariously through current events because his life is sad. LOL!

Low demand for oil because coronavirus. US oil suppliers can't get rid of their shit. They are straight up running out of storage space for their oil. High supply, low demand = price plummets. Negative price means oil suppliers are paying people to take their oil.

are you jewish?

economic brainlets and site tourists blowing something out of proportion? who would have guessed

WE'RE GOING TO WAR

What if I explained like you were 4? Or 6? What would you do about it? I have all the power here. I can even explain like you're 76-years-old with hearing issues. I'll be fucking yelling and calling you gramps and you couldn't do shit about it. Tell me how that makes you feel.