GET PAID TO INVEST IN OIL | Infinite Money Explained

What's up, guys? It's a crime here, so I think we just unlocked the new

infinite

money

problem because as of yesterday, April 20, the price of oil futures went negative, meaning it fell below zero dollars, that is, just below zero dollars, since you will now pay. you get oil and that has never happened before in history and this is real - this is not some Robin Hood

infinite

money

loophole that some software developer will fix every time he stops posting about a spy making bets on Reddit on Wall Street. Negative oil prices are serious and oil companies are now paying people just to receive their excess product, so in an extraordinary, perhaps once-in-a-lifetime event that made the front page of almost everyone yesterday the main media that exist.

It covers exactly what's going on, how the hell this could have happened, how oil prices went negative, how you can make money off of this, and whether these headlines are hyping this up again, which I'll be honest with you, yes, they do. . We're hyping it up once again and we're going to go over all the juicy details you guys want to know as soon as you submit. Don't wait as soon as they delete the like button. I realize almost everyone says that. Now but we have to show you that these like button smashers on this channel are the most powerful of all so we have to do our part to destroy it, delete it, delete the like button and tomorrow is my birthday so as a birthday gift anticipated.

For my part, if you wouldn't mind doing it, if you appreciate it very much, of course, with that being said, this is what you came here for. Oops, I accidentally touched it, here we go, first of all, here are the headlines that we are all watching oil prices. fall below zero dollars oil prices turn negative oil prices fall below zero as producers are forced to pay to get rid of excess oil the drop is 305 percent and the most shocking of all is this: ninety percent of still mods viewers smash their like button, okay? that last one was photoshopped, but in all seriousness, headlines like this are starting to make us think, wow, so the price of oil is now negative money, that must mean it will be free to fill up your gas tank, we know, we still know better.

They'll pay me to put gas in my Hummer h1 mm-hmm, that's going to be perfect, well, not exactly because, as I mentioned before, that headline is a little misleading and even though oil prices plummeted 305 percent, no tells the full story and It doesn't exactly mean that you are going to get

paid

to

invest

in oil. This is the problem right now with the closed economy, we don't use as much oil, we don't drive as much, if at all. We are not traveling, we are not going on airplanes and we certainly are not going on cruise ships.

Business and manufacturing have slowed to almost nothing and while all of that continues oil demand has plummeted, it's really just a matter of supply and demand and right now there is a lot more supply than demand, however that It's just the tip of the iceberg because although demand has slowed, production has continued as usual, although we are using less, which has created a surplus of oil that needs to go somewhere and that is where the problem arises. No, normally you would think the solution to this would be to stop producing so much oil at the well.

Yes, that would be the ideal solution, but actually doing it is incredibly complicated, because right now, throughout the entire process. In the wake of this, we have an old-fashioned schoolyard showdown between different nations who want to duel to try to be the main supplier of oil and have declared an old-fashioned competition over who could stay in the business for longer without going out of business, so I'm going to summarize things and clarify them in a way that makes sense to everyone, so if you feel like I'm simplifying this too much, let it go because this is pretty much what's happening basically. in Saudi Arabia. can produce oil for just under 10 dollars a barrel Russia produces it for about 20 dollars the United States ranges between 21 and 25 Canada around 27 dollars and from there it goes up and most of the oil in the world is currently produced by these three nations, but the United States has been slowly catching up.

Now I feel like this is the point where we should all gather around a campfire at night. Graham tells a creepy story to everyone, but I guess this will be done on YouTube. It all started in 2016, when oil prices plummeted because the United States began increasing its production, causing more supply to hit the market. Now lower oil prices don't really matter much for a place like Saudi Arabia because as long as it sells for over $10 a barrel. They make money but that's not a good thing for US oil companies who need oil prices to be above $20 to even make a profit and once prices fall below that amount they start to lose money on everything they earn well once it was announced that Russia and Saudi Arabia would not cut their oil production in the middle of all this disease, oil prices plummeted and this they said, on top of everything, you know, we're going to increase production, we will start producing even more oil, it's basically like they are saying we are going to put you out of business and although it is going to hurt us in the short term, we will benefit in the long term because after all this is over we will have much less competition and that is what is happening now.

With negative oil prices now, when you hear negative oil prices, it doesn't actually mean that you will be

paid

$30 just to receive a barrel of oil, except in this context it does, when you hear the term negative oil prices . refers to what is known as oil futures or, more specifically, oil futures from a particular supplier known as West Texas Crude. Every time I mention oil futures it's basically an agreement that says I will pay this particular price that day. and that day I will receive the product and comply with the agreement. In this case, people bought oil futures at a higher price hoping that things wouldn't get as bad and when the price of oil fell, it became clear that those future prices became less and less valuable to the point that they literally They ran out of space to contain all the excess oil.

Right now it's literally cheaper for the people who bought oil futures to pay you to take it off their hands than it is for them. to receive it and then have to figure out where to put it, like imagine you are selling koi fish, if there is a constant supply of buyers you could sell your fish for a decent amount of money, but what happens if the demand for koi fish goes down but your fish keep reproducing and then you don't have a place to put them well, at that point you just have to give them away, but what if you can't give them away and no one accepts koi?

Fish, but your fish keep reproducing and now it will cost you even more money to figure out where to store them well. At that point, you have to pay people to take these fish off your hands and that's basically what's happening with the oil they ran out of. room to put your oil, so it's cheaper for them to pay you to realize that it's up to them to find a storage solution because they ran out of storage due to very short demand with futures contracts expiring today, 21 April, the price of oil went negative just in an effort to get people to take it away, unfortunately those who store oil is not something like you and I can do in our free time, it's not like they can go empty it your pool and fill it with a bunch of oil and then get paid $40,000 per contract, although that would be great;

Instead, storage could be pretty fancy with this giant tanker that would store two million barrels for the bargain price of three hundred and thirty-five thousand dollars a day, so it's not like the average Joe could show up at the refinery today. , take delivery of a thousand barrels of oil, get paid forty thousand dollars, and then put that oil on a fifty-acre property somewhere until prices go up and it doesn't work out. So, unfortunately, sorry to be the bearer of bad news anyway, when you see negative oil prices, it only refers to contracts in May for a particular supplier that expire on April 21 and for future months, since you now have some time to figure out where to store all this excess oil prices are trading at more reasonable levels they are not negative at the moment although the reason oil is selling off in futures like this is really interesting and here's how works in terms of our koifish example, let's say you are a koi fish breeder and you know that you will have a hundred koi fish for sale at the end of the year, but you don't know what the current market price of those fish will be when they are actually born, so you could go and sell the rights to someone else to buy the koi fish at a future price where they basically say I will pay you upfront twenty dollars worth of fish and I will receive that fish in December, well if the price of koi fish goes down in December that It works in your favor because you sold half of your fish up front at a higher price and then you could sell the rest of that fish at market value but at the price of koi fish. ends up going up in December, well at least you set an upfront rate for half your stock, the person who paid $20 can now resell it for a profit and you have half your excess inventory that you could sell at market value and that It's exactly how oil works too, but why then the sudden drop in prices?

Well, it's because this particular refinery needs people to come pick up their oil today, April 21, and because there's a lack of storage space, people would rather pay someone else to take care of it. than they would accept to take delivery and then decide, wait a second, where do I store all this oil that I agreed to buy now so I know whether or not this will save you money when you go to fill up the gas tank. The answer is kind of yes and no, yes. Lower oil prices mean gas becomes cheaper, but the gas price you pay is made up of several different factors, such as distribution or search taxes and then the cost of the oil itself.

Anyway, you will still have to pay to put gas in your car, it won't be free and no, they won't pay you to do it although, as I said, it will most likely be a little cheaper now. As far as what this means for you and me, if this continues much longer, some US-based oil and gas producing facilities could end up going bankrupt and changing our dependence on foreign oil production and a Once prices go up again we will end up paying more money for gas because there will be fewer companies producing oil now and we have no idea how bad this will be or how low oil prices will have to be for this to eventually happen.

Some companies simply cannot run a deficit forever and we will have to close, although we don't know exactly when this breaking point will be, but if you want to make money from this, chances are you will be

invest

ing or shorting oil companies. and gas and I'll be honest when it comes to this. I have no idea what is going to happen and I am not going to invest in any of this. I'm more interested in the broad implications for the entire market than I am with this thing of trying to make a quick profit, but I hope this explains the situation and then from here you can make your own decision about what you want to do with it and who knows, maybe the Federal Reserve is going to start. buying oil contracts too with all that excess money coming from the imaginary money printer, so with that being said, guys, thank you very much for watching.

I really appreciate it, as always, if you haven't hit the like button yet, make sure to hit the like button. subscribe button notification bell feel free to add me on Instagram. I post here almost daily, so if you want to be a part of this, feel free to add me there too. My second channel, the Graham Stefan Show, I post there every day. I'm not going to post here, so if you want to see a new to me video every day, be sure to add yourself to it, and lastly, if you want to release stock, use the link below in the description that Wiebel will give you.

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