“In the history of crude oil, nothing can compare to the past two months.” Goehring & Rozencwajg managing partner Adam Rozencwajg recently joined Financial Sense (FS) Senior Editor Cris Sheridan on the FS podcast to provide an update on global oil markets. This truly is an unprecedented time for energy markets and the implications of reducing global output will likely be with us for years.
Oil prices have joined bond yields in doing the unthinkable: trading at negative levels. In the case of oil, the West Texas Intermediate (WTI) May 2020 contract reached a low of -$40.32 at 2:24 pm on Monday, April 20, before rallying back to finish the day at -$15.92 per barrel. This marked the first time in history oil prices broke below zero.