Current Oil Price

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ReserveGrowthRulz
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Post by ReserveGrowthRulz »

Oh, industry in the US has died before. Turns out, even after it died in 1986, it came roaring back later and created the largest oil and gas producer. Again.

Turns out, when it died in 1986, it never quite really died. It just got lean and mean. And waited.
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PS_RalphW
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Post by PS_RalphW »

WTI price falling off a cliff. US oil storage is full of very light oil it cannot sell. Below 15 dollars and falling. Brent also down a bit at
27 dollars
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PS_RalphW
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Post by PS_RalphW »

WTI is now just 15 CENTS a barrel. You cannot give it away
Little John
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Post by Little John »

the price has gone negative. I didn't even know that was a thing.
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Post by Little John »

-40 dollars a barrel now.

This is collapse.
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adam2
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Post by adam2 »

Little John wrote:the price has gone negative. I didn't even know that was a thing.
I don't recall negative oil prices ever happening previously.

I do however recall negative natural gas prices, at a time of low demand and ample stocks, natural gas HAD to be imported to test a new pipeline and prices did briefly go negative.
"Installers and owners of emergency diesels must assume that they will have to run for a week or more"
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clv101
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Post by clv101 »

One day trading left on the May contract, but the problem is physical and real, not enough is being burnt - storage is *full*.
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ReserveGrowthRulz
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Post by ReserveGrowthRulz »

Little John wrote:-40 dollars a barrel now.

This is collapse.
Actually, it is end of the month and full storage.

I haven't seen anyone yet suggest this trade will be physical.
vtsnowedin
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Post by vtsnowedin »

ReserveGrowthRulz wrote:
Little John wrote:-40 dollars a barrel now.

This is collapse.
Actually, it is end of the month and full storage.

I haven't seen anyone yet suggest this trade will be physical.
A hah a subtly in the futures market most of us do not think of and I barely understand. That it can go negative is just how someone that placed a bad bet on a particular months contract ( which they had no real business doing as they are not in the oil business) can get punished for not having a crystal ball to predict the future price and demand. They have to sell the contracts they bid on a month or more ago before they close and not having any tanks to put the oil in and none available for rent have no choice but sell. What a bad bet if they took it at say +35 and today they have to cash out at -17.
Perhaps after this there will be less non industry wall street speculators messing with the oil market. One can only hope.
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BritDownUnder
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Post by BritDownUnder »

ReserveGrowthRulz wrote:
Little John wrote:-40 dollars a barrel now.

This is collapse.
Actually, it is end of the month and full storage.

I haven't seen anyone yet suggest this trade will be physical.
I have a few empty jerrycans in the shed right now if that will help.
Interestingly Australia is one of the least prepared countries, in terms of days of storage for crude oil, in the OECD. Apparently only 20 days supply instead of the recommended 90. Now would be a good time to fill up.
G'Day cobber!
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ReserveGrowthRulz
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Post by ReserveGrowthRulz »

BritDownUnder wrote:
ReserveGrowthRulz wrote:
Little John wrote:-40 dollars a barrel now.

This is collapse.
Actually, it is end of the month and full storage.

I haven't seen anyone yet suggest this trade will be physical.
I have a few empty jerrycans in the shed right now if that will help.
I had someone at work ask me if he could make a few bucks if he took some money to store oil in his bathtub. I told him it would smell up his joint pretty bad.
BritDownUnder wrote: Interestingly Australia is one of the least prepared countries, in terms of days of storage for crude oil, in the OECD. Apparently only 20 days supply instead of the recommended 90. Now would be a good time to fill up.
With oversupply being what it is, I doubt Australia will have any trouble finding someone to sell them some.
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PS_RalphW
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Post by PS_RalphW »

The new front month contract for WTI opened at 20 dollars today and so far has fallen to 7 dollars and is still going down.
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ReserveGrowthRulz
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Post by ReserveGrowthRulz »

PS_RalphW wrote:The new front month contract for WTI opened at 20 dollars today and so far has fallen to 7 dollars and is still going down.
As long as supply is outstripping demand by the quantities it has been, there will be no other pattern.
stumuz1
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Post by stumuz1 »

Didn't know whether to post this in oil or gold thread!

https://www.youtube.com/watch?v=wQuXDvA8l24
vtsnowedin
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Post by vtsnowedin »

stumuz1 wrote:Didn't know whether to post this in oil or gold thread!

https://www.youtube.com/watch?v=wQuXDvA8l24
A BS artist that doesn't understand the closing out of oil futures monthly contracts.
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