Guest Post by Paul Craig Roberts
In Florida pressure to reopen beaches, vacation rentals, arcades, and restaurants is coming from the tourist industry. Nationally, oil interests are lobbying hard as the price of US crude has hit negative amounts. How can oil be sold for a negative price? Because there is no room to store it. Traders locked into delivery contracts are finding it cheaper to pay someone to take the oil than to try to secure a place to store the oil. You see, distribution works through oil contracts made in the past for future delivery. These contracts were made prior to the economic shutdown that has greatly reduced demand for oil. Apparently, it is cheaper to pay someone to take the oil than to break the contracts.
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