WTI crude futures saw their lowest-ever levels, falling into deep negative territory on Monday but rebounding back into positive territory by the very next day after the May 2020 contract rolled over. While such a scenario is possible, traders certainly don’t appear to be pricing in such a perplexing event again anytime soon. In fact, it could be what finally forces crude producing nations to come to their senses and take drastic measures to ease this massive supply glut that threatens to bankrupt hundreds of US shale drillers, fill nearly all land and sea-bound storage, and suppress benchmark prices at unsustainable, multi-decade lows.
Related ETF: United States Oil Fund, LP (USO), Energy Select Sector SPDR Fund (XLE)
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