This is one of the most asked question that why did crude oil crash?
WTI crude oil futures settled at -$37.63 per barrel on Monday,down $55.90 on the day.
Not only was it the most important price drop for the commodity in history at some 305.97 percent,
But it had been also the primary time that the WTI futures exchange fell below $0.
Crude oil as a whole is just aggressively selling off,
A lot of people are asking our overall gas prices.
As you guys can see for the past 180 days it’s been consistently selling off.
I am going to be sharing my opinion in this article and feel free to share your
Own opinion and down in the comment section.
So Why is Crude Oil Selling Off?
Like many of you guys know there’s been very unfortunate news when
You came down to the overall oil war between Saudi Arabia and Russia.
That’s what I think sparked the initial very aggressive draw ever since the pandemic
Overall demand for oil has been down and this shouldn’t come at much of a surprise.
So what I want you guys to understand is the reason that oil went negative today.
Is it means that the actual physical suppliers and producers of
Crude oil itself are actually paying people to take the oil off their hands,
Meaning that just to keep it in super simple terms
There is more oil being produced, than there is demand for it.
Therefore their overall storage facilities are getting maxed out.
They pretty much have one month before they meet max capacity.
This is very scary and very unfortunate and well
One of the analysts said is that they better figure out a way on how to get rid of this oil meaning,
That other people are being paid to store this oil or things are gonna get very very bad.
So what I do want to remind you is with all this very negative news for
Long-term investor in crude oil it’s up to you if you want to decide to invest in crude oil or oil
In general right now there is no question that oil itself is their oversold,
But one of the ideas that I want to remind you is again things can
Get worse before they even get better.
Saudi Arabia and Russia say that they have enough
Capital to make this last five to six years from one of the other countries to
Come up with an agreement.
Should We Invest for Long Term In Crude Oil?
I want to remind you is that for all those
Long-term investors or the people that are going long and oil
Again if you don’t want to get caught in the bottom and have your overall investment
Continue to lose value all I want to remind you is to begin to inform yourself
About what needs to happen for oil to actually begin to increase in price.
Because obviously for the past 180 days there is no question that even if
You bought one week ago two weeks ago and today is no different.
There is no question that it aggressively stole off.
So maybe for day traders this might feel a little bit different but for
Long-term investors it just looks the overall outlook in longevity um how long
It might actually take for things to get better again.
Looks like things might get worse before they get any better.
I do agree with a lot of you that it is very unfortunate
That crude oil is aggressively selling off may be this was the reason of crude oil crash but
The great thing about this is that if you were not already invested in crude oil,
You can at least take this as a reminder on hey we’re presented with a commodity that is
At a overall low since 1983.
So with that being said if you’re interested in it and if you’re eager to learn more
Why not build a watchlist about crude oil ETFs and crude oil stocks,
That you might want to invest in if crude oil itself
Begins to recover something that again might be worth learning more about long term
So let me know in the comment section what you guys think.
I wanted to make this very simple.
List the stocks that I’m paying attention to list that ETF and inverse ETF.
Tell me guys what do you think about crude oil?
Do you think it’s going to continue to drop or do you think that
It’s in the very early stages of an overall reversal.
Let me know down in the comments section don’t forget to stay connected 🙂
So this is my opinion about why crude oil crash this Monday.
Till next time guys take care of yourself and be happy 🙂