by Steve St. Angelo
While I forecasted Negative oil prices were on their way last month, it’s still SHOCKING to see it happen to such a degree. Today, the May WTIC futures contract saw the price drop to a stunning NEGATIVE $38 a barrel. Gosh, I thought we might see slightly negative oil prices, especially in the Canadian Oil Sands or Shale Oil, but I never imaged it falling to $38 with a MINUS sign in front of it.
[…] I started writing about SINGLE DIGIT and or NEGATIVE oil prices back in March. I based this forecast due to the oil supply not falling fast enough to offset the massive drop in demand. The U.S. WTIC was impacted so much more than BRENT Crude because traders who bought the contracts weren’t able to sell it due to a lack of storage bookings in Cushing, Oklahoma.