{"id":10727,"date":"2020-04-23T04:57:38","date_gmt":"2020-04-23T04:57:38","guid":{"rendered":"http:\/\/emilynews.com\/blog\/?p=10727"},"modified":"2020-04-23T04:57:40","modified_gmt":"2020-04-23T04:57:40","slug":"news-commentary-1042-crude-oil-trades-negative","status":"publish","type":"post","link":"https:\/\/emilynews.com\/blog\/?p=10727","title":{"rendered":"News Commentary #1,042 – Crude Oil Trades Negative!"},"content":{"rendered":"\n

Are Cryptos the Safe Haven now?<\/strong><\/p>\n\n\n\n

For years, many have advocated that oil was always a safe place to invest — and have suggested that sooner or later Bitcoin and other cryptos would become worthless.\u00a0 Well, the impossible has happened and oil has become worthless.\u00a0 In fact, you will be paid to take it away!\u00a0 That\u2019s what a negative price tag implies.\u00a0 And, Bitcoin and other cryptos keep chugging along.\u00a0 So, black gold has become worthless and virtual currency is still a store of value.\u00a0 This is a very interesting — and unprecedented — situation.\u00a0 A recent article in Bitcoin dot com<\/em> talks about all this.\u00a0 I have shared it below.\u00a0 It is interesting reading.<\/p>\n\n\n\n

After Pundits Predicted Bitcoin’s Death for 11 Years, Barrels of Crude Oil Trade Below Zero<\/strong><\/p>

Global markets had a historical day on Monday, as the price of oil dropped below zero and closed the day at -$36 per barrel of crude. The oil crash below zero has never happened in anyone\u2019s lifetime and economists worldwide are uncertain about the future of the world\u2019s financial system going forward. The meltdown also caused global stock markets to slide significantly and traders offloaded equities and commodities with great fervor during the course of the day.<\/p>

History Is Made: Oil Prices Plunge 300% Dropping Below Zero to Negative $36 per Barrel of Crude<\/em><\/p>

Oil prices plunged on Monday and desperate crude traders raced to sell contracts as fast as they could. Financial journalists couldn\u2019t even keep up with the price of oil, as it slid below zero to -$36 per barrel by the end of the day. At present, the price of West Texas Intermediate (WTI) oil-based futures is up a hair but the prices of Western Canadian Select, Mars US, Coastal Grade, and ethanol prices are down considerably.<\/p>

The result of the negative plunge could be catastrophic to the economy, as oil futures converge with physical deliveries fueling the world\u2019s industries. Oil traders sold massive amounts of contracts on Monday afternoon, liquidating physical deliveries scheduled for May. Meanwhile, the price of the classic safe-haven asset gold has been riding just below the $1,700 per ounce range. While the price of oil plunged, the gold bug and economist Peter Schiff said gold would follow a similar pattern as oil, but in reverse.<\/p>

\u201cWhat is happening now in the oil market will soon happen in reverse in the gold market,\u201d Schiff\u00a0tweeted\u00a0on Monday.<\/p>

A few bitcoin proponents followed Schiff\u2019s rally cries, but replaced gold with their favorite digital currency. \u201cOil is negative and you still think we won\u2019t have major currency failures?\u201d\u00a0asked\u00a0Messari.io founder Ryan Selkis. \u201cBuy bitcoin,\u201d Selkis added. Gabor Gurbacs tweeted about how barrels of crude dropped lower than bitcoin ever has. \u201cOil hit zero before bitcoin,\u201d Gurbacs\u00a0said.<\/p>

After 11 Years of Saying Bitcoin Will Drop to Zero \u2013 Pundits Watch Liquid Gold Become Near Worthless<\/em><\/p>

On Tuesday morning, well before the New York Stock Exchange (NYSE) opening bell, futures look extremely dreary and analysts are predicting the Dow Jones to slide another 300 points. The drop in oil below zero follows the last 11 years of pundits saying that cryptocurrencies would never last and bitcoin would drop to zero. A great example of this point of view is the\u00a0380 bitcoin obituaries headlines\u00a0that have been published time and time again over the years. Even Peter Schiff has said that the crypto economy and the price of bitcoin will someday trade at zero.<\/p>

\u201cThese currencies are going to trade to zero or pretty close to it when the bubble pops. Right now, the only reason why people are buying bitcoin is because the price is going up. When it turns around, they are not going to sell it for the same reason,\u201d Schiff said.<\/p>

At the time of writing, the crypto economy is hovering between $195-200 billion, as markets did end up taking a slight hit on Monday during the oil fallout.\u00a0BTC\u00a0is trading for just above $6,800 per coin,\u00a0ETH\u00a0is swapping for $170 per unit, and bitcoin cash (BCH) is trading for $218 per\u00a0BCH. Right now petroleum refineries and oil dealers are also running out of space to store the liquid gold and contract sales are slipping away fast.<\/p>

The lack of space has caused oil refineries to store oil charters out at sea and businesses like Glencore are now storing 3 million barrels of crude at sea. Glencore representatives would not comment on the move, but reports note that it costs them $37,000 a day and the vessel will be stored at sea for six months. Royal Dutch Shell is also allegedly storing oil on three supertankers at sea that hold 2 million barrels each. Sources say these oil firms are holding back since the recent OPEC deal failed and plan to wait until prices rise.<\/p><\/blockquote>\n\n\n