April 20, 2020 – The Street
Uncharted Waters: Cramer's 'Mad Money' Recap (Monday 4/20/20)
By Scott Rutt
Oil Markets in Real Life
For an expert opinion on the day's oil action, Cramer turned to longtime oil insider Rusty Braziel, CEO of RBN Energy, for help.
Braziel explained that what happened Monday had nothing to do with the physical market for oil, it was simply a paper market problem. Oil contracts for April expire Tuesday, he said, and those holding those contracts must close their positions or take delivery. Some traders waited too long to sell, he said, and found themselves with no way out.
But while today's issue had nothing to do with the physical markets, Braziel cautioned that this might not always be the case. The whole world has too much oil, he said, and we're quickly running out of storage capacity. Even if the government wanted to divert all excess oil into the strategic petroleum reserve, that process would take weeks or months to physically happen. "No one can keep up with this level of excess oil," Braziel noted.
Read the full article here: https://www.thestreet.com/jim-cramer/uncharted-waters-cramers-mad-money-recap-april-20
