Free Fall, Oil Prices Go Negative

[jjohnson873]

(04-22-2020 03:13 PM)David Hayden Wrote:  I wondered how prices could go negative and looked into it. I believe it works like this:
.........
This is how the price drops below zero and why the Saudi's didn't just stop pumping the oil. Presumably they will decrease production, but hey, a contract is a contract.
Dave

Nicely explained, David. And who said we didn't learn from the real estate derivatives market in 2008? Just replace the term "real estate" with "oil".
~ Jim J. ~