by Gilbert B Norman
toolmaker wrote: ↑Tue Apr 21, 2020 1:02 pm I was thinking the same about stored tank cars except for one thing. Locals freak out over when they realize there are full cars in storage nearby. This may require loading tanks and shipping off to a remote locations for many months.Mr. Toolmaker, here is a Journal editorial that I find factual describing the dilemma confronting these commodity traders:
https://www.wsj.com/articles/care-to-st ... 1587424678
If you thought negative interest rates were bizarre, how about minus-$37 for a barrel of oil? That was the going price for a time on Monday on the futures contract for a barrel of West Texas Intermediate crude delivered in May. To put it another way, it would cost you less under that contract to fill your bathtub with oil than to fill it with water.Finally, regarding your immediately captioned point, note, yes, there are some localities that will object to loaded tank cars parked within their jurisdiction. But, last time I checked, those cars have wheels, and if their DOT Inspections are out of date, that can be remedied.
So goes the continuing turmoil in oil markets from the collapse in demand amid the coronavirus pandemic and global recession. The real price of oil isn’t less than $0. The bizarre behavior in futures markets is a combination of crashing oil demand today and expectations for higher oil prices later in the year when the economy is beginning to recover