US benchmark oil futures plummeted to negative numbers on Monday, as if the coronavirus epidemic hadn’t already pushed the world into the Twilight Zone. Social media took time to appreciate the icing on a very surreal cake.
Futures contracts for West Texas Intermediate (WTI) – the US oil benchmark fuel – plunged over 100 percent on Monday to a record-breaking -$37.63, the first time going negative in history and a bizarre event by any measure. Even if it hadn’t happened in the midst of a pandemic that has laid waste to the US and many other countries’ economies, it would be a shock.
The contracts expire on Tuesday, and a total collapse in oil demand – given the lockdowns keeping most of the world’s population from driving or flying anywhere – combined with a glut of supply apparently forcing some oil tankers to linger offshore for lack of places to store their contents has made the contracts worse than worthless. Despite the claims of some on social media, however, one can’t go to the gas station and demand payment to fill up one’s tank.
#OilPrice drops more than 100%…that means sellers are PAYING buyers to take the oil from them – because they dont have any place left to store it.Somehow this makes absolute sense in the post-truth, Corona driven, dystopian world we live in.
Even as the country enters uncharted economic territory, the one-track mind of some in the American media establishment could only filter this news through the prism of Orange Man Bad. By one count, it took less than a minute for the jackals to pounce.
30 seconds. It took 30 seconds. pic.twitter.com/gtZ0DJD9Fg
Well, he now owns theBiggest unemployment numberThe most times and the biggest stock market dropsThe biggest oil price drop in historyMost deaths due to stupid. Still few testsStill no PPE.MAGA. pic.twitter.com/ZVuLKnsGw4
Others imagined a new future for American foreign policy now that the Pentagon would presumably no longer be plundering Middle Eastern petroleum.
No longer necessary for US troops to guard Syrian oil fields, presumably?
America looking at the trillions it has spent in war only to have oil cost less than a bottle of Coke! ??? #OilPrice#crudeoilpic.twitter.com/UNxvpfG9th
Plenty of armchair ‘investors’ were willing to weigh in…
Like most people who spent their 20s with 3-figure savings and 5-figure debt, I barely understand this #OilPrice graph but hate being left out of twitter moments even more.I like the navy + black background combo: elegant but alarming.*eats another avocado toast* pic.twitter.com/q7fiLBjoKW
I would like to buy 2 barrels of oil…keep the change #oilprice#OilCrashpic.twitter.com/50d7QT85Pp
…and price comparisons were numerous.
A barrel of oil is now cheaper than a pint of beer.$4 #oilpricepic.twitter.com/uhw3j6XrA4
Things you can now buy for a dollar. #oilpricepic.twitter.com/V7fgk9hmIq
new $MCD dollar menu.$CL_F$USO$WTIpic.twitter.com/P62XxCgsTw
Oil played a starring role in a few memes.
Who did this? ??? #OilPricepic.twitter.com/ErZqqsvtKo
Trump’s oil advisers right now explaining things to him #OilPricepic.twitter.com/opOGha7LOv
OPEC slashed production by nearly 10 million barrels per day starting next month, though given continuing lockdowns, it may not be enough. At least we now know who will be blamed if it isn’t.
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