Stranded At Sea: Oversupplied Barrels Of Oil

[Click to view in browser](. Apr 22nd 2020 Dear InvestingChannel Reader, The glut in the oil markets sent futures contracts expiring on Tuesday for WTI in the negative territory. The oversupplied oil markets saw the traders willing to pay as much as $37/barrel to anyone willing to take the contract to accept physical delivery oil. Meanwhile, storage facilities are filling up and tankers of oil literally remain stranded in the ocean. The world’s largest oil ETF - $USO - announced that it will roll over its positions in oil to contracts that expire further out in the future. It means that an instrument traded like a stock now has the theoretical possibility of going below zero. Moreover, it means that the ETF will no longer accurately track the percentage change in the spot price of oil, which it was ideally meant to do. Those who manage the ETF will now be managing the fund more actively. CME, the world’s largest derivatives exchange, announced that it was changing the current options pricing model to one that allows traders to speculate on prices going negative. Even though oil crawled back up on Wednesday along with equities, the volatility in the sector is indicative of the dual demand and supply shock affecting global markets. As investors redid the math behind their risk models, here’s what caught our eye: - [Netflix Reports Q1 Sales Beat, Streaming Subscriptions Up 22.8%]( - [The Worst Is Yet To Come for Oil Prices]( - [Canadian Pacific Puts Faith In PSR And Employees]( - [Delta Loses $534 Million In 1Q; Much Bigger Losses Looming]( - [The Latest: British Adviser Says Social Measures To Continue]( - [Medical Companies Pummeled By Outbreak; A Fresh Market Opens]( - [Global Risk Sentiment Recovers As Oil Prices Bounce]( - [Virus Dings AT&T Results, Telecom Withdraws Year Guidance]( - [Massive Oil Price Crash Sends Shockwaves Through Markets]( [Need a financial advisor? Compare vetted experts matched to your needs. Compare credentials & fees.]( Choosing the right financial advisor is daunting, especially when there are thousands of financial advisors near you. We make it easy by matching you to vetted advisors that meet your unique needs. Matched advisors are all registered with FINRA/SEC. [Click here to read more.]( Sponsored by Wiseradvisor As negative prices and new risk models shock the oil markets, some ETFs could end up losing more on the downside: [3 Dividend ETFs With Way Too Much Energy Exposure]( [(Benzinga)]( Carnage in the oil patch isn't limited to energy stocks and dedicated crude exchange traded funds. Although energy's weight is rapidly dwindling in major equity benchmarks, oil's decline has wide-ranging implications for the broader economy and global equity markets. [Click here to read more.]( The aftermath of negative price on Monday saw a recovery on Wednesday, as investors poured money to "buy the dip": [Stocks Claw Higher Worldwide; Oil Prices Crawl Off The Floor]( [(Barchart)]( NEW YORK (AP) — Stocks around the world are clawing higher on Wednesday, and the S&P 500 climbed toward the first gain in what’s been a dismal week for markets. Even the oil market gained ground. Prices for crude have been turned upside down because of how much extra oil is sloshing around following a collapse in demand. U.S. oil jumped 25% after President Donald Trump threatened the destruction of any Iranian gunboats that harass U.S. Navy ships, raising the possibility of a disruption to oil supplies. [Click here to read more.]( [5 Charts Prove Stock Market Could Collapse]( Global risk sentiment got off to a rip roaring start in late NY/early Asian trade last night following a report from STAT that suggested 125 COVID-19 patients, with severe symptoms in a Chicago hospital, responded favorably to a new antiviral treatment from Gilead Sciences called Remdesivir [Click here to read more.]( Sponsored by Banyan Hill Publishing Fiscal and monetary stimulus programs by the government might not be enough to support the economy as small business claim aid programs will not get them to rehire workers: [Many Small Businesses Say Loans Won't Get Them To Rehire]( [(Barchart)]( WASHINGTON (AP) — Some small businesses that obtained a highly-coveted government loan say they won’t be able to use it to bring all their laid-off workers back, even though that is what the program was designed to do. [Click here to read more.]( [Free Options Webinar: Protective Puts]( Sponsored by [The Options Industry Council]( Have you ever wondered if you could protect your long stocks or ETFs, or how to potentially recover from a position that’s gone against you? Attend a free webinar, Protective Puts, presented by OIC. [Sign up now to watch for free]( [CDC Cautions About Second Coronavirus Wave In Winter]( Sponsored by [Benzinga]( Robert Redfield, director of the Centers for Disease Control and Prevention, said that a second wave of the COVID-19 pandemic could combine with the annual seasonal flu in the U.S. in winter and could be more threatening. [Read more.]( [Preeminent Research Firm: “This Is #1 Gold Stock For 2020”]( Sponsored by [Stansberry Research]( The renowned research firm that predicted the Dotcom crash, bankruptcy of Freddie & Fannie, and the housing boom has issued its latest prediction. 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