Negative oil prices - Barokong
A fun tidbit sent to me by a good friend in the money management industry.
NYM WTI Crude oil is negative $37.73. They pay you to take it. The catch: you need an oil tanker and a place to park it. It went down from $-11.42 in the 10 minutes we were emailing about it.
From an email correspondent:
Exchanges are very careful to match approved warehouse space with the production capacity of the region surrounding the delivery point.
Warehousemen can do extremely well under conditions of surplus supply. Where are the warehousemen?
I would expect that EPA regulations on constructing tank storage and pipelines have hampered the response time in developing storage capacity.The latter I can believe. China can build a hospital in 10 days, but zoning permitting and many other regulations would make it impossible to build an oil storage tank in a mere 2 months in the US.
Where is the US strategic petroleum reserve?