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The price of one American oil futures contract crashed on Monday into the negative for the first time in history.
The May WTI crude contract CL.1, -113.23% CLK20, -113.23% closed at -$37.63 a barrel, a one-day drop of $55.90, or 306%, according to Dow Jones Market Data. Those prices—at negative $$ per barrel—mean that companies must now pay a buyer to take oil off their hands and store it if they want to exit the market.
Since the COVID-19 epidemic started, S&P500 crashed over 30% to 2192+/- from the high of $3393.52 in just matter of 4weeks. Dow Jones, Dow Transport, Nasdaq and Russell 2000 all suffered similar fates. However, market panic was nowhere else as pronounced as in Crude Oil.
On 8 March 2020, Saudi Arabia initiated a price war with Russia, facilitating a significant fall in the price of oil. Over a few weeks, US oil prices fell by 34%, crude oil fell by 26%, and Brent oil fell by 24%. The price war was triggered by a breakup in...