May Crude Selling for $1.xx??? Holy cow

[niko79542]

I have so many questions because I am not a futures trader.

Can someone explain whats going on here. How much of this selloff has to do with the May contracts expiring Today and how much of it has to do with storage capacity in Cushing, Oklahoma?

Lastly, would I be right in saying that it was more dangerous to trade the front month last week because of liquidity concerns?

 

[S2007S]

I'm confused ....is this just the may contract expiring? Or is oil really under $2 a barrel?

 

[niko79542]

I have no idea whats going on. I've never seen this happen.
https://res.cloudinary.com/dlpclqzwk/image/upload/v1587405620/what._xkewzm.png

 

[S2007S]

Will it jump to 20+ once the contract expires and the June one comes into effect?

 

[trdes]

I'm confused ....is this just the may contract expiring? Or is oil really under $2 a barrel?

People don't want to take delivery in the may contract, so its putting massive pressure on may contract

 

[Girija]

It reached penny.

 

[S2007S]

https://www.cnbc.com/2020/04/20/oil...res-in-focus-as-coronavirus-dents-demand.html

 

[S2007S]

People don't want to take delivery in the may contract, so its putting massive pressure on may contract

So what happens tomorrow?

 

[Edmond]

Now -1.43

 

[trdes]

So what happens tomorrow?

I imagine it will put some pressure on current contract, but not sure exactly, I'd just follow the current contract price now.