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Oil Contracts Collapse Putting Pressure On Stocks

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The price of West Texas Intermediate (WTI) crude oil product hit a historic level on Monday as it posted its worse loss on record. According to MarketWatch, “the May contracts made history by settling in negative territory for the first time ever.”

The platform was so broken that sellers were paying buyers to take the contracts off of their hands. So, Monday, April 20, 2020, will go down in history as the day that the price of oil broke down.

The futures industry is a very risky but popular business. The fact that its movements can impact the direction of the stock market, makes it a key indicator of economic activity at home and abroad. In a recent report, Pvmreports.com suggested that the activity in the oil futures proved that the market was broken.

I read in an essay where it said, “Even though perceptions and expectations are powerful ingredients in the formation of oil prices, (Monday’s) price crash must have taken place in some kind of parallel universe.”

For those who are not familiar with how oil futures work, “The Motley Fool,” an on-line stock advisory group, defines the product as, “contracts in which buyers and sellers of oil coordinate and agree to deliver specific amounts of physical crude oil on a given date in the future. “

The benchmark futures contract for crude oil in the U.S. involves West Texas Intermediate, which produces a particular grade of oil that has fairly low density and sulfur content that makes it relatively easy to refine. It has historically traded on the New York Mercantile Exchange, and therefore many traders refer to the contracts as NYMEX WTI crude oil futures.

Trading is also common globally for what are called Brent crude oil futures, which involve a different grade of oil found in the North Sea off the European continent.

While some speculate that Russia and Saudi Arabia conspired to artificially bring down oil prices in order to disrupt the U.S. stronghold on oil exports, it is clear that the pandemic has had an effect: When people stay home, oil use simply goes down.

So, for Wall Street traders, “Bizarro World” was in full effect on Monday. Even if that date isn’t marked in the future as a day of financial infamy, it will certainly be the topic of discussion in a lot of business schools.

One of my colleagues, Harbo Jensen, who is an MIT graduate and retired oil company executive, described the event in simple terms to help lay-people like myself understand what happened.

“You are now seeing the financial paper traders struggling to get out of contract under which they would need to take actual delivery of oil in May at Cushing, Okla.,” Jensen said.

“Clearly, these guys want to find a buyer for their paper contract because they really don’t want that real ‘wet’ barrel of oil….these paper barrel traders would not know what to do with a barrel of real oil if they had to pick it up, so they’re willing to pay someone, say $15-$20 to take it off their hands. Hence, the negative price.

“If there is anyone who thinks that this pandemic in which we live is not real, they should just look at the standstill that we are seeing in the oil markets. It seems surreal that global economies have been shut down by this virus, and if you do not believe it, let’s see how low the price reveals itself at the pump. We may be able to keep our tanks full, but we will be all dressed up with nowhere to go.”

Curtis O. Robinson, Sr.

Curtis O. Robinson, Sr.

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Activism

Oakland Post: Week of April 17 – 23, 2024

The printed Weekly Edition of the Oakland Post: Week of April 17 – 23, 2024

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Activism

Oakland Schools Honor Fred Korematsu Day of Civil Liberties

Every Jan. 30, OUSD commemorates the legacy of Fred Korematsu, an Oakland native, a Castlemont High School graduate, and a national symbol of resistance, resilience, and justice. His defiant stand against racial injustice and his unwavering commitment to civil rights continue to inspire the local community and the nation. Tuesday was “Fred Korematsu Day of Civil Liberties and the Constitution” in the state of California and a growing number of states across the country.

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Fred Korematsu. Courtesy of OUSD.
Fred Korematsu. Courtesy of OUSD.

By Post Staff

Every Jan. 30, OUSD commemorates the legacy of Fred Korematsu, an Oakland native, a Castlemont High School graduate, and a national symbol of resistance, resilience, and justice.

His defiant stand against racial injustice and his unwavering commitment to civil rights continue to inspire the local community and the nation. Tuesday was “Fred Korematsu Day of Civil Liberties and the Constitution” in the state of California and a growing number of states across the country.
One OUSD school is named in his honor: Fred T. Korematsu Discovery Academy (KDA) elementary in East Oakland.

Several years ago, founding KDA Principal Charles Wilson, in a video interview with anti-hate organization “Not In Our Town,” said, “We chose the name Fred Korematsu because we really felt like the attributes that he showed in his work are things that the children need to learn … that common people can stand up and make differences in a large number of people’s lives.”

Fred Korematsu was born in Oakland on Jan. 30, 1919. His parents ran a floral nursery business, and his upbringing in Oakland shaped his worldview. His belief in the importance of standing up for your rights and the rights of others, regardless of race or background, was the foundation for his activism against racial prejudice and for the rights of Japanese Americans during World War II.

At the start of the war, Korematsu was turned away from enlisting in the National Guard and the Coast Guard because of his race. He trained as a welder, working at the docks in Oakland, but was fired after the bombing of Pearl Harbor in 1941. Fear and prejudice led to federal Executive Order 9066, which forced more than 120,000 Japanese Americans out of their homes and neighborhoods and into remote internment camps.

The 23-year-old Korematsu resisted the order. He underwent cosmetic surgery and assumed a false identity, choosing freedom over unjust imprisonment. His later arrest and conviction sparked a legal battle that would challenge the foundation of civil liberties in America.

Korematsu’s fight culminated in the Supreme Court’s initial ruling against him in 1944. He spent years in a Utah internment camp with his family, followed by time living in Salt Lake City where he was dogged by racism.

In 1976, President Gerald Ford overturned Executive Order 9066. Seven years later, the 9th Circuit Court of Appeals in San Francisco vacated Korematsu’s conviction. He said in court, “I would like to see the government admit that they were wrong and do something about it so this will never happen again to any American citizen of any race, creed, or color.”

Korematsu’s dedication and determination established him as a national icon of civil rights and social justice. He advocated for justice with Rosa Parks. In 1998, President Bill Clinton gave him the Presidential Medal of Freedom saying, “In the long history of our country’s constant search for justice, some names of ordinary citizens stand for millions of souls … To that distinguished list, today we add the name of Fred Korematsu.”

After Sept. 11, 2001, Korematsu spoke out against hatred and discrimination, saying what happened to Japanese Americans should not happen to people of Middle Eastern descent.
Korematsu’s roots in Oakland and his education in OUSD are a source of great pride for the city, according to the school district. His most famous quote, which is on the Korematsu elementary school mural, is as relevant now as ever, “If you have the feeling that something is wrong, don’t be afraid to speak up.”

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Bay Area

Port of Oakland Commission Votes to Change Oakland Airport to ‘San Francisco Bay Oakland International Airport’

The Port of Oakland Commission voted unanimously to change the name of Metropolitan Oakland International Airport to San Francisco Bay Oakland International Airport at a commission meeting Thursday afternoon. The Port initially announced the name change on March 29, claiming that the change will attract more passengers and enhance the airport’s visibility. They contend that the airport often gets neglected by the public’s lack of knowledge of Oakland’s proximity to San Francisco.

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Port of Oakland commissioners voted unanimously to change the name of the Metropolitan Oakland International Airport to San Francisco Bay Oakland Airport at Commission meeting on April 11.
Port of Oakland commissioners voted unanimously to change the name of the Metropolitan Oakland International Airport to San Francisco Bay Oakland Airport at Commission meeting on April 11.

By Magaly Muñoz

The Port of Oakland Commission voted unanimously to change the name of Metropolitan Oakland International Airport to San Francisco Bay Oakland International Airport at a commission meeting Thursday afternoon.

The Port initially announced the name change on March 29, claiming that the change will attract more passengers and enhance the airport’s visibility. They contend that the airport often gets neglected by the public’s lack of knowledge of Oakland’s proximity to San Francisco.

“We want people to know where Oakland is and how beautiful our city is. We want them to visit, we want them to spend their money, and we want to keep our money into our local economy,” Port Commission President Barbara Leslie said at the meeting.

The commissioners shared anecdotal experiences and research to explain how this new name change will elevate and add to the growth of Oakland, not take away from their Bay Area neighbors.

The Port claimed that local residents had been asking for more options in domestic and international flights, but in order to do that, outside travelers need to be aware of Oakland’s presence first.

Since the announcement of the new name, San Francisco leaders strongly opposed the suggestion for a change, the City Attorney going as far as threatening legal action.

SF City Attorney David Chiu announced Monday that his team sent a letter to the Port of Oakland, writing that if Oakland goes forward with the name change, the city will go forward with a lawsuit to prevent the use of their trademarked name.

San Francisco owns U.S. federal trademark registrations for the marks “San Francisco International Airport”, the letter says.

Chiu further claimed that the name change will only cause confusion and chaos for travelers who are used to seeing the San Francisco name in the SFO trademark.

“We want to see the entire Bay Area thrive as a tourist destination and expand our offerings to visitors, but this proposal is not a legal or practical way to go about it. If Oakland moves forward with this proposal, San Francisco will pursue legal action to prevent misuse of our trademark,” Chiu said.

SF Mayor London Breed joined Chiu’s letter, stating that Oakland does not need to add the internationally popular city to its brand in order to grow its services.

“[Oakland] is rich in culture and wonderful people and has its own unique identity. It does not need the name San Francisco as part of its airport to stand out,” Breed wrote.

The Port defended its proposed actions, saying that if the vote did go forward, they would “take all appropriate measures to defend its right to use this accurate geographic identifier.”

“The proposed name modification will clarify, not confuse. The new name identifies where OAK is actually located, which is on the San Francisco Bay,” a spokesperson said on behalf of the Port.

Support for the name change extends beyond the Port. Several regional leaders, airlines and community members have come out in support of the name change, including Oakland Mayor Sheng Thao.

“This adjustment isn’t just about signage—it’s about inviting travelers to discover all that Oakland and the region have to offer. From our local dining scene to unique shopping spots and cozy hotels, there’s something here for everyone. Let’s work together to ensure that Oakland Airport continues to serve as a welcoming gateway for visitors and a source of pride for our community,” Thao said.

Because of public outcry amongst residents and leaders in Oakland and San Francisco before and during the Commission meeting, the Board decided to extend the second reading for the proposed name change from the end of April to the first meeting in May. This decision will allow commissioners to connect with community groups and leaders over their concerns for the change.

The Port Commission is scheduled to hold a second reading of the proposed name change on May 9.

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