Remember when Donald Trump proclaimed the success of his “big Oil Deal with OPEC?” Well, the deal has turned out to be a complete and total disaster. The oil markets crashed to historic levels today with oil falling to *NEGATIVE* 37.59 a barrel.
To put this in perspective, on March 13, 2020 Trump had the United States order large quantities of oil to purportedly fill the strategic reserve at $31.89 a barrel. Eight days ago, oil was $22 a barrel. Today it is NEGATIVE. Trump’s efforts to manipulate and prop up the oil market with the OPEC deal not only completely failed, but turned out to be a disastrous deal based on the price of oil today.
You may recall on March 13, 2020 Trump tweeting the following: “The big Oil Deal with OPEC Plus is done. This will save hundreds of thousands of energy jobs in the United States. I would like to thank and congratulate President Putin of Russia and King Salman of Saudi Arabia. I just spoke to them from the Oval Office. Great deal for all!”
The oil futures for the May contract are in a free fall because it represented the fuel that would be delivered to the US while a majority of the country was still under stay-at-home and lockdown measures. Typically, this oil would be delivered to entities like airlines, but most oil storages were already filled from lack of use.
“It hasn’t taken long for the market to recognize that the OPEC+ deal will not, in its present form, be enough to balance oil markets,” wrote Stephen Innes, chief global markets strategist at AxiCorp, CNN reported.
The graph below, tweeted out by @damocrat shows the historic and unprecedented nature of today’s crash.