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I’d like to apologize for the relative paucity of posts today. You see, dear reader, I’ve been busy clearing out my basement to make room for 550 or barrels of sweet, sweet crude oil.

The price on the futures contract for West Texas crude that is due to expire Tuesday fell into negative territory — minus $37.63 a barrel. That’s right, sellers were actually paying buyers to take the stuff off their hands.

Underscoring just how acute the concern over the lack of storage is, the price on the futures contract due a month later settled at $20.43 per barrel. That gap between the two contracts is by far the biggest ever.

But me? I’m not satisfied with a quick $30,000 profit. I’m holding out for more.

Consider the difference between Friday’s prices for West Texas Intermediate to be delivered in May, which was $18.27 a barrel, and in May 2021, which closed at $35.52: A $17.25 spread could be locked in by buying contracts for oil to be delivered next month and then selling contracts for delivery a year later.

Oil Costs Less Than Zero Now, But More Than $30 This Fall [WSJ]
Oil prices fall to historic lows, as West Texas crude futures drop to negative $37.63 [Dallas Morning News]



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