# Oil is selling in Negative Numbers **URL:** \ **Category:** General Discussion\ **Created:** [April 20, 2020, 7:43pm UTC](https://community.cartalk.com/t/oil-is-selling-in-negative-numbers/163144 "2020-04-20T19:43:08Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![MikeInNH](https://avatars.discourse-cdn.com/v4/letter/m/a587f6/32.png) [@MikeInNH](https://community.cartalk.com/u/MikeInNH)\ **Post date:** [April 20, 2020, 7:43pm UTC](https://community.cartalk.com/t/oil-is-selling-in-negative-numbers/163144/1 "2020-04-20T19:43:09Z")
Oil prices dropped 321% on Monday. > **[Oil plunges 321% into negative territory for the first time ever as demand...](https://markets.businessinsider.com/commodities/news/us-crude-oil-wti-falls-to-21-year-low-1029106364)** > > Oil prices plunged to a record low and into negative territory on Monday as uncertainty mounted about storage for excess supply. WTI crude oil f... ---
**Author:** ![texases](https://sea1.discourse-cdn.com/cartalk/user_avatar/community.cartalk.com/texases/32/862_2.png) [@texases](https://community.cartalk.com/u/texases)\ **Post date:** [April 20, 2020, 8:17pm UTC](https://community.cartalk.com/t/oil-is-selling-in-negative-numbers/163144/2 "2020-04-20T20:17:04Z")
It’s crazy. One thing that article didn’t discuss is that today is the last day for the May contract, which is the actual reason the price went negative. The June contract is at $21/bbl. So it’s not QUITE as bad as the article makes out, but it is bad. ---
**Author:** ![tom418](https://avatars.discourse-cdn.com/v4/letter/t/da6949/32.png) [@tom418](https://community.cartalk.com/u/tom418)\ **Post date:** [April 20, 2020, 9:24pm UTC](https://community.cartalk.com/t/oil-is-selling-in-negative-numbers/163144/3 "2020-04-20T21:24:54Z")
About 15 years ago, when oil prices were rising,the stock market would tank (higher costs for transportation, manufacturing, etc). Now, when oil prices go down, the equities markets go down. Is this because the U.S. has been exporting oil? ---
**Author:** ![texases](https://sea1.discourse-cdn.com/cartalk/user_avatar/community.cartalk.com/texases/32/862_2.png) [@texases](https://community.cartalk.com/u/texases)\ **Post date:** [April 20, 2020, 9:32pm UTC](https://community.cartalk.com/t/oil-is-selling-in-negative-numbers/163144/5 "2020-04-20T21:32:14Z")
Our gas prices are low, $1.17/gallon at Sams…don’t forget the taxes. Average wholesale gas price was $0.71/gallon on Friday, our TX total gas taxes are about $0.40, so that leaves $0.07 left over. Not much, to me. My mistake, $1.15/gallon at Sams and Costco. ---
**Author:** ![Honda-Blackbird](https://sea1.discourse-cdn.com/cartalk/user_avatar/community.cartalk.com/honda-blackbird/32/3159_2.png) [@Honda-Blackbird](https://community.cartalk.com/u/Honda-Blackbird)\ **Post date:** [April 20, 2020, 9:54pm UTC](https://community.cartalk.com/t/oil-is-selling-in-negative-numbers/163144/6 "2020-04-20T21:54:12Z")
True… but what did I say about defending those damn oil companies @texases ? You are correct however…as usual. I guess I was looking for a 300% reduction at the pump… which I have no idea what that means or what number that represents… I need to ponder that i think. ---
**Author:** ![texases](https://sea1.discourse-cdn.com/cartalk/user_avatar/community.cartalk.com/texases/32/862_2.png) [@texases](https://community.cartalk.com/u/texases)\ **Post date:** [April 20, 2020, 9:55pm UTC](https://community.cartalk.com/t/oil-is-selling-in-negative-numbers/163144/7 "2020-04-20T21:55:20Z")
If you find a gas station paying you to take their gas, let us know! ---
**Author:** ![Honda-Blackbird](https://sea1.discourse-cdn.com/cartalk/user_avatar/community.cartalk.com/honda-blackbird/32/3159_2.png) [@Honda-Blackbird](https://community.cartalk.com/u/Honda-Blackbird)\ **Post date:** [April 20, 2020, 10:06pm UTC](https://community.cartalk.com/t/oil-is-selling-in-negative-numbers/163144/8 "2020-04-20T22:06:51Z")
I guess that is what a 300% reduction would amount to …No? lol… I dont see being paid at the pump anytime soon sadly. ---
**Author:** ![texases](https://sea1.discourse-cdn.com/cartalk/user_avatar/community.cartalk.com/texases/32/862_2.png) [@texases](https://community.cartalk.com/u/texases)\ **Post date:** [April 20, 2020, 10:09pm UTC](https://community.cartalk.com/t/oil-is-selling-in-negative-numbers/163144/9 "2020-04-20T22:09:14Z")
> [@Honda\_Blackbird](#): > > I guess that is what a 300% reduction would amount to …No? That’s exactly right, and that’s what was happening for a some of the oil trading hands today. It was the second to last day of a ‘futures contract’, and folks stuck with “May” oil today were paying folks to take it off their hands because storage is so full and the demand is so low. The new contract for June is around $21/bbl. Here’s more: > **[This oil price crash isn't as bad as it seems — here's why](https://www.cnbc.com/2020/04/20/this-oil-price-crash-isnt-as-bad-as-it-seems-heres-why.html)** > > The contract for May delivery of U.S. crude dropped more than 100% on Monday to a record low, but longer term, things might not be as bad. ---
**Author:** ![RandomTroll](https://sea1.discourse-cdn.com/cartalk/user_avatar/community.cartalk.com/randomtroll/32/12184_2.png) [@RandomTroll](https://community.cartalk.com/u/RandomTroll)\ **Post date:** [April 21, 2020, 1:26am UTC](https://community.cartalk.com/t/oil-is-selling-in-negative-numbers/163144/10 "2020-04-21T01:26:29Z")
[http://download.stream.publicradio.org/podcast/marketplace/segments/2020/04/20/mp\_20200420\_seg\_16\_64.mp3](http://download.stream.publicradio.org/podcast/marketplace/segments/2020/04/20/mp_20200420_seg_16_64.mp3) the first segment of today’s _‘Marketplace’_ is a good explanation, 2 minutes ---
**Author:** ![circuitsmith](https://sea1.discourse-cdn.com/cartalk/user_avatar/community.cartalk.com/circuitsmith/32/40376_2.png) [@circuitsmith](https://community.cartalk.com/u/circuitsmith)\ **Post date:** [April 21, 2020, 1:39am UTC](https://community.cartalk.com/t/oil-is-selling-in-negative-numbers/163144/11 "2020-04-21T01:39:49Z")
> [@tom418](#): > > About 15 years ago, when oil prices were rising,the stock market would tank (higher costs for transportation, manufacturing, etc). > > Now, when oil prices go down, the equities markets go down. Is this because the U.S. has been exporting oil? The equity market simply doesn’t like uncertainty. Prices swinging wildly, up or down, cause panic. ---
**Author:** ![bing](https://sea1.discourse-cdn.com/cartalk/user_avatar/community.cartalk.com/bing/32/4619_2.png) [@bing](https://community.cartalk.com/u/bing)\ **Post date:** [April 21, 2020, 5:14am UTC](https://community.cartalk.com/t/oil-is-selling-in-negative-numbers/163144/12 "2020-04-21T05:14:49Z")
The other thing to consider is the cost involved in refining oil to usable product and getting that product to the consumer. Regardless of the price of crude, that doesn’t change the cost to refine it or transport it. Yeah plus taxes. I filled up last night and it cost me $7. True I didn’t need that much but still $1.38 was pretty cheap. There was a time when it cost me $25 a day. ---
**Author:** ![pyrolord314](https://avatars.discourse-cdn.com/v4/letter/p/6a8cbe/32.png) [@pyrolord314](https://community.cartalk.com/u/pyrolord314)\ **Post date:** [April 21, 2020, 1:04pm UTC](https://community.cartalk.com/t/oil-is-selling-in-negative-numbers/163144/13 "2020-04-21T13:04:13Z")
> [@Honda\_Blackbird](#): > > Makes you wonder why its not that much reduced at the pump keep in mind in our wonderful state we have the 2nd highest taxes on gasoline and diesel… ---
**Author:** ![MikeInNH](https://avatars.discourse-cdn.com/v4/letter/m/a587f6/32.png) [@MikeInNH](https://community.cartalk.com/u/MikeInNH)\ **Post date:** [April 21, 2020, 1:04pm UTC](https://community.cartalk.com/t/oil-is-selling-in-negative-numbers/163144/14 "2020-04-21T13:04:14Z")
> [@texases](#): > > The June contract is at $21/bbl. Unfortunately that can change. ---
**Author:** ![Honda-Blackbird](https://sea1.discourse-cdn.com/cartalk/user_avatar/community.cartalk.com/honda-blackbird/32/3159_2.png) [@Honda-Blackbird](https://community.cartalk.com/u/Honda-Blackbird)\ **Post date:** [April 21, 2020, 1:12pm UTC](https://community.cartalk.com/t/oil-is-selling-in-negative-numbers/163144/15 "2020-04-21T13:12:06Z")
@pyrolord314 well what else would you expect from one of the most corrupt states in this country? I expect nothing less…and furthermore I wonder why we aren’t being punished further…oh wait…we are. ---
**Author:** ![MikeInNH](https://avatars.discourse-cdn.com/v4/letter/m/a587f6/32.png) [@MikeInNH](https://community.cartalk.com/u/MikeInNH)\ **Post date:** [April 21, 2020, 1:18pm UTC](https://community.cartalk.com/t/oil-is-selling-in-negative-numbers/163144/16 "2020-04-21T13:18:00Z")
Right now in Andover MA there seems to be a price war going on between BJ’s Warehouse and Irving Gas station about 1/2 up the road. BJ’s regular is at %1.39. Irving is $1.50. Everyone else is $1.90 or higher. I live over the border in NH and our gas at Irving is $1.89…and we have $0.08/gal LESS tax then MA. ---
**Author:** ![pyrolord314](https://avatars.discourse-cdn.com/v4/letter/p/6a8cbe/32.png) [@pyrolord314](https://community.cartalk.com/u/pyrolord314)\ **Post date:** [April 21, 2020, 1:18pm UTC](https://community.cartalk.com/t/oil-is-selling-in-negative-numbers/163144/17 "2020-04-21T13:18:51Z")
> [@Honda\_Blackbird](#): > > well what else would you expect from one of the most corrupt states in this country? I expect nothing less Hell that’s been going on in Harrisburg for decades now. Doesn’t matter who’s the governor ---
**Author:** ![Whitey](https://sea1.discourse-cdn.com/cartalk/user_avatar/community.cartalk.com/whitey/32/24680_2.png) [@Whitey](https://community.cartalk.com/u/Whitey)\ **Post date:** [April 21, 2020, 1:38pm UTC](https://community.cartalk.com/t/oil-is-selling-in-negative-numbers/163144/18 "2020-04-21T13:38:48Z")
In related news, construction of the Keystone pipeline is once again on hold. I wonder how long that will last, and why the company still wants to build it. > **[US judge cancels permit for Keystone XL pipeline from Canada](https://apnews.com/89e3f21d344db86b8743665ea66b892c)** > > BILLINGS, Mont. (AP) — A U.S. judge canceled a key permit Wednesday for the Keystone XL oil pipeline that’s expected to stretch from Canada to Nebraska, another setback for the disputed project... ---
**Author:** ![Whitey](https://sea1.discourse-cdn.com/cartalk/user_avatar/community.cartalk.com/whitey/32/24680_2.png) [@Whitey](https://community.cartalk.com/u/Whitey)\ **Post date:** [April 21, 2020, 9:35pm UTC](https://community.cartalk.com/t/oil-is-selling-in-negative-numbers/163144/19 "2020-04-21T21:35:53Z")
This is how we react to this kind of news in the age of the internet; we make memes. ![cat](https://global.discourse-cdn.com/cartalk/original/3X/5/f/5fd9897154ea3b736a02cb42876d9c7369a262dd.png) ![price_right](https://global.discourse-cdn.com/cartalk/original/3X/a/8/a8f48cb4466727990262563850969d6e00338737.png) ![essential_oils](https://global.discourse-cdn.com/cartalk/original/3X/e/a/eae2f204530f23ff4da9aebef7ee8a05ce45802f.png) ![pallbearers](https://global.discourse-cdn.com/cartalk/original/3X/3/7/37afc1d7d4e82a1454f1c79cb6ea13a7c7d6045d.png) ![monkey_barrel](https://global.discourse-cdn.com/cartalk/original/3X/2/2/2259e5529385ecf9aad33be84407ca8a1464d815.png) ![joker](https://global.discourse-cdn.com/cartalk/original/3X/1/3/1377927565adea9e4fb217bf343d7a8bd084b1ed.jpeg) ![goya](https://global.discourse-cdn.com/cartalk/original/3X/5/4/549ff22a7d90872051529981f42485d91eca57f0.png) ![tankard](https://global.discourse-cdn.com/cartalk/original/3X/0/0/00e54421369c75c5965d7e0c1d39cec72a4f7561.png) ![dinosaur](https://global.discourse-cdn.com/cartalk/original/3X/5/a/5ac9e775c9abbedf7f579a761852d563fce5eda8.jpeg) ![mcdonalds](https://global.discourse-cdn.com/cartalk/original/3X/3/5/35112700bca57e2f5bb21252c58cf9290d5cdc38.jpeg) ---
**Author:** ![bing](https://sea1.discourse-cdn.com/cartalk/user_avatar/community.cartalk.com/bing/32/4619_2.png) [@bing](https://community.cartalk.com/u/bing)\ **Post date:** [April 21, 2020, 9:46pm UTC](https://community.cartalk.com/t/oil-is-selling-in-negative-numbers/163144/20 "2020-04-21T21:46:49Z")
Heh heh. Ya gotta think longer term having ridden through a number of booms and busts. Price goes up everyone wants to get a small car, electric car, or bike. Can’t think of anything else except how to save gas and mpg. Price goes down? Everyone is stuck with their small cars and looking for the station with the lowest price. Both cars are full. The lawn mower is full, and all I’am down is 2 1/2 gallons in my 5 gallon gas can. Too bad for me, but I’m not going to go out and buy another $20 gas can to save $5. I’ll just ride it out like I have been doing for 50 years. Just remember back to the days when you could only buy gas with odd/even license plates? This is better except the reason is everyone is scared stiff and not going to work, or play, or to restaurants. This too will pass. By the by, I saw a guy in a big $60,000 or so pick-up yesterday and on the window in big letters was “financial mistake”. Life lessons are sometimes expensive. ---
**Author:** ![Rod-Knox](https://avatars.discourse-cdn.com/v4/letter/r/a183cd/32.png) [@Rod-Knox](https://community.cartalk.com/u/Rod-Knox)\ **Post date:** [April 22, 2020, 3:52pm UTC](https://community.cartalk.com/t/oil-is-selling-in-negative-numbers/163144/21 "2020-04-22T15:52:52Z")
And investment bankers can buy that oil with money they borrow and they’ll get paid to borrow it. Ain’t the FREE MARKET great! [Next page](https://community.cartalk.com/t/oil-is-selling-in-negative-numbers/163144.md?page=2)