We’re Gonna Need a Bigger Boat

“A key American oil benchmark, West Texas Intermediate, fell by more than 80% on Monday as global oil markets continue to grapple with a pandemic-driven collapse in demand.” Like with many marketplace disasters, there are two sides to this story. Very little demand. And a ton of supply. (And just your luck, filling up your tank is cheap just when you’re not allowed to go anywhere.) It’s not unthinkable that it will cost more to store oil than companies can make selling it. The Guardian: Giant oil tankers are being used to hold record amounts of crude at sea due to a global oversupply that threatens to overwhelm the world’s storage facilities. It’s already leading to negative futures for the first time. (I put my money into oil when I should have invested in sourdough starter…)

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