TNK
You may have noticed a negative sign in front of WTI crude oil today. Yea, that’s not good...
USOIL
It had to do with May Future contracts expiring and an unprecedented amount of oil supply flooding the market.. In short, no one wants to buy 1000 barrels of oil with no where to store it.. the fancy CFA word is called “Contango”, and has to do with the price (or rent) for just holding & storing 1,000 barrels of oil.
Bottom line: Oil Storage and Tankers just became a boiling HOT commodity.. (there were 2 puns in that one)
I’ve got a target of $45.