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.
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
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"
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.
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.
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.
