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Capitalism in the Oil Patch

May crude prices went negative a few hours ago. The June WTI contract is $21 as I write this post. That difference is a tell of high storage costs as demand is way down while storage is reaching capacity. I am betting that tanker stocks will do well as more tankers are being used for floating storage. Charter rates are high and increasing. I already own a number of these companies, but I may add one to Speculations on a pullback. They are very cyclical so not long term holds.

Some businesses including shale producers may not make it in this environment. Risk including bankruptcy is an important part of capitalism. Bailing out corporations with taxpayer money is something else. The money would be better spent on healthcare and education.

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