Cheaper than free oil?

[Mightyfordranger]

Just read today that oil prices went below zero? I don't quite understand what this means. Can someone explain it?

 

[Snoranger]

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Probably that it’s costs more to produce it then it sells for.

 

[adsm08]

They'd pay you to take the oil.

 

[85_Ranger4x4]

Cheap new tires?

Fingers crossed...

I don't get how a commodity can go negative though...

@PetroleumJunkie412 do you know how this works?

 

[Uncle Gump]

I think it means he is out of work at this point...

I asked the same question over in the cheap gas thread... I don't have a clue where it goes from here.

We better get people back to work soon.

 

[4.0blue98]

It just means the Beverly Hillbillies would just be the Hillbillies today...

 

[PetroleumJunkie412]

Storage and transportation costs exceed the commodity's value.

Storage is now more valuable than the oil filling it, by that large of a margin.

 

[Dirtman]

Ill let you store your gasoline in my tank for 10 bucks...

 

[Saddle Tramp]

I was confused too. Evitdenlty it's the future stock value of the oil that dropped below zero. (-$27) From what they said that means people were paying $27 to get it off their stock package per share.

Bent Crude (the most common one used) was at $20 a barrel.

 

[pjtoledo]

I was confused too. Evitdenlty it's the future stock value of the oil that dropped below zero. (-$27) From what they said that means people were paying $27 to get it off their stock package per share.

Bent Crude (the most common one used) was at $20 a barrel.

so we all should go get bent???

 

[sheep herder]

so we all should go get bent???

I'm already a bit twisted. Does that count?

 

[Dirtman]

Oil is stupid.

 

[adsm08]

Oil is stupid.

Oil is slickery.

 

[85_Ranger4x4]

I was confused too. Evitdenlty it's the future stock value of the oil that dropped below zero. (-$27) From what they said that means people were paying $27 to get it off their stock package per share.

Bent Crude (the most common one used) was at $20 a barrel.

Futures are weird... speculated future prices of grain always seem inaccurate and hokey but it somehow steers the current prices of things.

 

[Dirtman]