What Do You Say When Someone Says They Will Give You Their Oil? …. Sorry, No TANKS … Neat Chart Explaining

On Monday while in a Zoom study group meeting, an Oil Futures contract expiring on Tuesday went negative ….

What?

Yep … in theory, had you bought one of those Futures contracts (there were about 100k open interest), you would be the proud owner of 1000 barrels of oil, AND the seller would pay you to take his oil….. the only issue, you need some place to store it!

What do you say when someone says they will give you their oil?   Sorry, No TANKS!

Being forever market nerds … when the contract went negative about 5 different alerts hit my vision and Donald “The Brain” texted within about a minute… Digressing…

Interesting Chart of the Events, Stay Tuned

Take note of the cost to store oil, late in this chart ! Hence the reason to “Pay” to get rid of the oil, plus the possible cost to shut the rig down….

Enjoy!

img_1370

Of course from our friends at Visual Capitalist…. Well done guys!

Have a Great “Free Oil” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
jkfinancialinc
street-cents

 

 

 

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