How the fuck can a tangible physical object have a value of negative money? If something is real its value has to be > $0, as there is some derivation of value in everything real. It can't be worth $0 much less negative money. NEGATIVE MONEY MAKES NO SENSE AT ALL. Value doesn't work like that, an existing object doesn't detract value from the universe for existing.
There's literally no logical basis for it, this is utterly detached from reality.
Businesses pay people to take shit away when they don't want it. It's pretty common
What if it costs more to produce it, than what you can sell it for? That would make it negative value?
you're actually retarded op
they NEED you to take it off their hands so they're paying you to take it.
Do you pay for the garbage truck to collect your shit?
Holding on to oil costs money if you don't have the right infrastructure and right now the reserves are full.
There’s a cost to storage, there’s a cost to space.
If overhead cost > the good cost we get negative value.
You can't just store/dump crude oil anywhere. These companies are sitting on tons of oil and it's tying up resources they could be diverting to other things, so they're trying to get rid of it. Imagine an entire cargo tanker that can't do anything because it's carrying thousands of tons of oil that they can't get off the ship.
A physical object can't be worth negative money. The activity of you taking a barrel of oil off their hands might be worth $37 but to price physical objects as having a negative value has no basis in reality.
The object on its own in a total vacuum costs something
The object in the context of a global market with hundreds of trillions of trillions of moving parts where its value can be leveraged off of other values does not necessarily cost something
Trash doesn't have a negative value. If you wanted theres probably a way to sell the materials in it. We dont want to bother with that though so we pay taxes to have it dealt with for us. That doesnt mean it has negative value though.
Yes, that's how it works. You obviously don't know how free market works.
they're a contract though you retard
the contract is to buy oil at a certain price
now that price happens to be they pay you
whats so hard to understand
are you actually autistic
If I have 1 dollar bill and a -1 dollar bill, do I have nothing?
You'd have a dollar and a slip of paper that denotes that anybody who accepts it must give you an additional dollar in value. In effect you have a dollar and a hypothetical dollar.
>user I have 50 tonnes of radioactive shit here that I need go get rid of. Can I move it to your back garden if I give you like, a tenner? Not enough? How much do you want to take this off my hands
You used to be able to just dump it in fields/landfills but you can't do that anymore.
The disposal probably costs more than paying people to take it due to regulations. I don't even know how you safely get rid of oil.
Congrats, you're figuring out the subjective theory of value
god damn, OP might literally be retarded
>Trash doesn't have a negative value. If you wanted theres probably a way to sell the materials in it
Then why aren't you profiting off your trash?
The price is the valuation of a barrel of oil. Is there a single other physical object in the universe that exists with a negative vlaue?
Imagine you speculate on the future price of oil, so you buy oil futures contracts, never intending to actually take delivery.
Guess what happens when the contract expires? you will have to take delivery of that oil. The price reflects what investors will pay to NOT take delivery.
Explain.
Cause I'm a germaphobe.
That's a fucking imaginary derivative of an oil barrel. More likely a derivative of derivative's derivative. Muh tangible asset ffs
>Is there a single other physical object in the universe that exists with a negative vlaue?
Ya. You.
your mom
No one fucking listened...
You retards kept shilling oil to each other as a "good idea" while I tried to explain how suddenly shutting down oil wells would cause damage to the well. I tried to explain how storage was a very serious issue. Boats are literally being refused to dock to off load oil there is nowhere to put it.
I linked Canadian research explaining how oil would not stabilize nor would the lock down stop. I also linked actual news from Al jazeera not that bullshit you get in America and no one listened.
I mean i only come here to get a general sentiment so i can do the opposite but should i even bother dropping advise in the future. did anyone short oil lol.
Any non-meme answers?
it's a contract for oil delivery at a certain date with numerous underlying conditions not a plain barrel of oil
I just came here to laugh at you
>How the fuck can a tangible physical object have a value of negative money
How much will you pay for my poo? How much money do I need you to take my poo? How much extra to videotape it?
Demand shock and government subsidies.
Garbage. Do you not pay for people to take your trash away?
There might be further conditions, but the price is still the value given to a barrel of oil is it not?