FWIW one of the reasons there is building pressure to open up the economy AND keeping downward pressure on the stock market, seems to be the simple fact that various oil storage facilities are basically full AND turning off an oil well isn’t all that simple,… if an oil well is turned off ya might not get it back into production again (this is especially true in fracking)
the long term consequences is going to be felt in the futures market,… noticed some here mentioned they were looking at the USO “etf” that contains future contracts
since retail investors buy the USO “etf” (which acts like a stock, meaning it can go to zero) BUT in reality the future contracts have lots of downside liabilities (i.e. a credit default swap) where someone is suppose to pay the bill
basically if things continue and no there is no more crude oil storage along w/ decreased demand things could be a real big mess (here is a preview)
[quote] He started the day with $77,000 — by midnight, he owed $9 million
On April 20, Shah started with about $77,000 in his account. He put $2,400 toward buying crude, first at $3.30 a barrel, and then more at 50 cents. From there it got interesting. Ultimately, as the historic plunge in oil prices took hold, he was able to load up on futures at a penny each.
In reality, crude was already trading at negative-$3.70 a barrel — not at one cent — but the minus sign wasn’t recognized due to a glitch in the Interactive Brokers Group’s software. By the end of the day, Shah got the message: His $77,000 had turned into a $9-million debt.
FWIW personally think we are in for rougher times ahead, because of the way USO was restructured w/ four month rolling contracts,… which basically is a way to try and kick the can down the road and hope thinks somehow work out
