Fill it with crude oil.
Here’s how weird the oil market was on Monday.
The price of a barrel of crude oil fell to $ 38. NEGATIVE $ 38! It was a drop of over 300% for the day.
This means that for every barrel of oil investors owned, they lost not only their initial investment, but also an additional $ 38.
Now you have to understand: This price is on a barrel of oil in the May futures contract which expires today on Tuesday. In this way, the holder must either sell the contract or take possession of barrels of oil at maturity.
Because of the terrible economy these days, nobody in the world uses a lot of oil and gas. Normally, oil would be in demand at this time of the year as gasoline consumption increases and this makes the oil more valuable.
Not this year.
So the extra unnecessary oil and gas are now sitting in tanks on land or tankers at sea. And there is little to no room to store more oil. With no place to put things, the last thing anyone who has these futures wants is to have to take more oil.
This is where your pool comes in.
Technically – and I don’t seriously suggest it – one of these unlucky investors could give you $ 35 to dump each barrel of its oil in your pool. And to put things in perspective, there are 1,000 barrels of oil associated with each futures contract.
So one contract could earn you $ 35,000 if you’re ready to give up swimming for the summer. (Seriously, you would probably need a new pool next year. But this is just fantasy, so please me.)
You’re going to see stories of how the oil was worth less than nothing on Monday. It’s really not true; it was the May futures contract that did it.
The June futures contract was still trading at over $ 20 a barrel, at least until investors woke up and started worrying about oil again next month.