<Anchor>

Kwon Aeri's friendly economy starts. Reporter Kwon, international oil prices plunged overnight. Yesterday (21st), the negative price of the first time in history was shown, and it was necessary to put oil on top, so the situation took place. Let me know how this is possible.

<Reporter>

Yes, in a word, it can be said that the economic crisis caused by Corona 19 was a case that showed a distinctiveness from other economic crises.

It wasn't just a minus, but the price that ended at $ 18 per 158.9 liters per barrel and liter just before that fell to minus 38 on the 20th in US time, down $ 56 a day.

In order to sell 158.9 liters of crude oil, it would be necessary to add $ 38 with oil.

Rather than selling crude oil, the situation is, 'I have to throw this oil away, but where do I throw it away? Please take care of this. ' If anyone appears to be able to handle it, it is correct to say that the price I am willing to pay has soared to $ 38 per 158.9 liters of crude oil.

<Anchor>

Yes, I come to know what I'm talking about, but I would like you to be kind enough to explain the more fundamental reason as a corner name.

<Reporter> The

most fundamental reason can be said that the world in which corona is so abnormally abnormal is not in need of oil.

Whenever the news says, "How much crude oil has been traded" every day, it's not the real oil coming and going. Usually, you're buying in advance the right to take this much oil next month.

Those who buy this right in advance, futures traders in the crude oil market, quite simply, are like distributors without their own warehouse. These people usually don't even see oil in person.

It's about making money by handing over the rights to future oil you bought in advance to a refinery that actually needs oil. But right now, there is no way to get this right.

Oil refineries are already building huge quantities of crude oil, or making gasoline while actually losing money. The more you turn the factory, the more damage you have.

Crude oil futures prices have recently risen from $ 20 a barrel. However, gasoline prices in the international market fell to the level of $ 16-20 per barrel, as they were bought and transported to make gasoline when they were much more expensive before.


The flour was about 150 won and then it was 100 won, but the price of the bread that was made at 150 won was more than 90 won. There was no one who said I would eat bread.

There are no planes, no ships, and the United States and Europe are shut down. Everyone is at home. I don't even have a car.

In this situation, the person who bought the right to oil in May has no warehouse and no oil tank, but it comes from the mountain to dunning.

"Please take the oil as promised, and we can't afford to see it because we have nowhere else to put it." That is today.

The great turmoil unfolded yesterday one day ahead of the expiry date of the May WTI heavy oil in Texas, west of the United States, on the 21st.

<Anchor>

So, even if those who had the right to buy this May and the right to buy May lose money on the expiration date of the gift, they would go out like this, right?

<Reporter> It

's like throwing the right to buy a gift. So, the price per dollar of crude oil in a day plunged as much as $ 56.

However, there is no law that this situation should not be repeated unless Corona 19 is resolved.

Once today, two months later, the rights to June oil have been traded much more, but the atmosphere has been reluctant to buy.

So, June's trade also ended at $ 11 a barrel. When hitting with 1 liter of crude oil, it is less than 100 won per liter.

Nowadays, many people say that the price of oil is cheaper than the price of water.

But in July and December, the farther the right to oil in the far future, the higher the price. This is called the 'contango' phenomenon.


Corona 19 will still be resolved in December, but at that time there will be people who ask for oil, so you have to secure your rights now.

But if things don't go as expected, the same thing can happen again yesterday. The oil market situation seems to have to be communicated often in the future.

In fact, the most popular topic in the stock market other than Samsung Electronics stocks was derivatives that invest in crude oil.

When the stock price plunged, the price of oil plunged like Samsung Electronics was driving, so 'investing now would make a big profit'.

At an unprecedented level, individual investors have invested in related derivatives. However, there are products that are currently difficult to recover.

There are more complicated conditions in these products to jump in and say, "I am buying." If you don't consider it enough, you can see a ruin if you invest.

If you invest a bit aggressively in the future that you see assets that have plummeted right now, there are many risks. Each investment is made by each person, but it is good to be cautious, I would like to say again.

<Anchor>

Yes, the situation is not that green, so you can look like this.