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You are here: Home / Archives for negative prices

296: Why Negative Prices Exist and What Can They Teach Us

April 29, 2020 by David Stein · Updated April 27, 2022

Why the oil price fell below zero and what are other examples of negative prices. What lessons can we learn from negative prices. Topics covered include: How oil futures work and why the oil future prices fell below zero for the first time ever.Why has the United States Oil ETF (USO) lost so much money.How ETF authorized participants create new shares only so they can be shorted.How storage problems for oil and electricity can lead to negative prices.How negative interest rates are … [Read more...]

Filed Under: Podcast Tagged With: commissions, commodities, commodity futures, contango, negative interest rates, negative prices, oil, oil futures, oil prices, recycling, renewable energy, USO

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