WOW WTI OIL PRICE AT NEGATIVE 37.63 USD .What does this really mean?




https://www.marketwatch....-10-a-barrel-2020-04-20

As the link above states



Can I get a truck and go to an oil depo and they pay me to take oil from them??NUTS

Physical oil market though have low prices cannot in any semblance of reality be having a negative price.In the bizarre metaphysical parallel universe of Wall Street yes but in the real world no.

This is the fundamental stupidity of futures markets determining prices of underlying assets.Its just traders speculative gambling.

Now this presents a solid case for futures markets to be banned from determining prices of especially commodities as its subject to manipulation and as we have seen today utter lunacy.

Some oil man works hard to get oil off the ground then some gambling punks of Wall Street determines his selling price in this dubious manner??Not fair


Not to worry.Tomorrow we shall be back to 20 USD as this dubious May futures contract expires

Though WTI oil price hit NEGATIVE 37.63 USD yesterday the major oil producing companies dropped only slightly with Chevron down 4.13% and Exxon Mobil down 4.70% yesterday.The shale oil frackers is another matter altogether.Bankruptcies in the shale oil is a real possibility if the Fed doesnt buy their junk bonds and I know the Fed will print money to buy these bonds.

Its stupid futures prices determining oil prices that went bezerk but nobody was seriously taking that price and a case for banning futures markets as a price setting scheme should be explored

European economies are beginning to open their economies

Not that simple for emerging markets to just default on USD denominated bonds.Washington will slap sanctions on you crippling your economy even further or organize a coup to dethrone the defaulting government possibly even an invasion

The billionaire is at is again talking painful truth that mainstream Wall Street doesn't want to hear.How can major US corporates spend 90% of their profits (7 trillion USD) to buy back stock and dividends to enrich the 1% that own these stocks including the corporate executives who buy these stocks personally,then have their companies as separate legal entities buy back the stock using company profits to artificially raise the stock then the executives sell these risen stocks at super profits?Ponzi scheme shenanigans to me.Then when these stocks started to crash a few weeks ago,they cry to the Fed to print new trillions to bail them out raising their stock prices once more for them to sell at super profits.As the Fed pumps trillions to be immediately injected into these corporates,the small restaurant,barber shop,that waitress is yet to receive the scraps bones of bailout money left once the Wall Street fat cats have already eaten the meat

USA economy shrinks by 4.8% in Q1

The collapse of stocks is coming,the rally is not sustainable.
Jerome Powell:Unemployment rate likely to surge into double digits

Spot on @Ericsson.The recent rally on Wall Street is a typical bear market rally after a big stock market crash during a recession.This rally creates false optimism and sucks up retail investors then the real crash plays out later.This phenomena has happened during all US recessions including the 1929 Stock market crash and resultant Great Depression in the 1930s,the dotcom collapse in 2001 and the real estate meltdown during 2008.

Its a rally fueled by Fed money printing and no fundamentals.How can stocks possibly rise when US has the largest number of covid-19 cases and deaths,citizens are still on lockdown and millions losing their jobs every week (this week 3.84 million jobs lost totaling 30 million job losses for the last 6 weeks) yet equities keep surging?

Once one knows how Wall Street really works then realizes what a joke it all is.Bad economic news is good for the stock market as bad economic data means the Fed will print more money to offset the economic decline so stocks get bought up with newly printed US dollars.

Yeap.At least today thus far stocks have faced reality and sunk due to the 3.84 million jobs lost in the last 7 days.In prior weeks where even more than 5 million jobs were being lost,stocks rallied as investors knew the Fed will print more money to buy all asset classes including stocks to offset job losses.

Who knows the day is young.Equities may stage a major comeback as Plunge Protection Team buys equities in mass to prevent a broader sell off.Very volatile market with wild up and down swings