New Negative Territory

Two very rare negatives happened this week.

First the May contracts for West Texas Intermediate crude oil price dropped to -$40 a barrel. Sellers were effectively paying buyers to take the oil off their hands since their hands were getting full with storage capacity reaching its limits.

Image: Via economist.com

The other rare negative was China’s GDP growth which was -6.8%. This is the first time this has happened for decades, ending a period of growth the world has not seen.

Things are expected to pick up though in the following quarters, but that will depend on another negative figure: The R0 figure. The measure of how infectious the Covid 19 virus is.

Unlike the other two measures, it the R0 stays negative that’s a good thing. As it gets lower the other unprecedented negative numbers will start going up again.