Crude oil’s crash below $0 was ‘a pure freak of markets,’ economist tells Keiser Report

A week after the price of US WTI crude plunged into negative territory for the first time ever, oil prices continue to freefall as concerns mount about the oversupply on the market.

Max Keiser talks to Alasdair Macleod of about a range of issues, including the forecasts for gold prices, the fiat currency collapse, oil prices, and record unemployment rates.

Talking about oil, Macleod says “You have to look out […] along the futures curve, to six, twelve months, and that gives you an idea what exactly the price is.”

He explains that the fluctuation is all at the front end and it’s because of delivery problems.

The economist talks about people buying oil contracts on the New York Mercantile Exchange, not realizing that a seller could actually dump the oil on them, and “that’s actually what happened, they had nowhere to put it.” It was a complete fuss and the consequences were really quite dramatic, says Macleod.

“With the way the global economy is going, which is rapidly downhill, then demand for oil is likely to fall substantially as well. So, they are going to continue to have this problem. I don’t see a meaningful recovery in oil prices for some time.” He adds: “I think what happened last week was a pure freak of markets.”

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