(04-22-2020 03:26 PM)Maximilian Hohmann Wrote: Hello!
(04-22-2020 03:13 PM)David Hayden Wrote: Again, the ones who held the contracts had nowhere to put the oil so they had to get rid of the contract and ended up paying people to take it.
I also read an article about that in a German newspaper which explained it much like you do. But still I wonder who those last "buyers" of the contracts may be? And what they intend to do with their oil. Or are they just fraudsters who take the "free money", burn those contracts and hide somewhere on a tropical island and let everything else be the problem of other people?
But then I guess the money will only get paid _after_ the contract is fulfilled and the oil is actually pumped into an empty tanker or pipeline, neither of which exist at this time. So these negative prices are actiually an offer (that no one can take) and really only exist on paper.
Regards
Max
At least some of the oil can go into the Strategic Petroleum Reserve if the government takes delivery, but that eventually fills up and tankers may end up steaming in circles.