===> "Doesn't really mean very much !"
Well, it's not as bad as it looks anyway, but it still means plenty. It means tankers stranded at sea with no place to offload oil. It means that June futures will likely devalue too because there is too much oil still being pumped everyday with no place to put it. It means that our domestic shale oil operations have to shut down completely and likely won't re-open for some time to come. All of these things are bad and will have ripple effects, some of them long lasting.
It doesn't really mean much, I stand by that statement, a few weeks it'll be back to 20-22 per barrel,
>Most of the issue revolves around oil delivery rules and storage capacity issues specific to a single location in Oklahoma.<
>For sure, that's a headline-grabbing event. It's made fascinating by the fact that the drop in the futures prices over a few hours came just days after an agreement from OPEC (The Organization of the Petroleum Exporting Countries) to slash crude production by a whopping 10% of global output. Significant production cuts would tend to lift prices, and yet the opposite happened.<
>We have only to look at the price of Brent crude, the widely-used European benchmark, to see that things aren't so bad after all. Prices for Brent futures fell around 5% Monday to approximately $27 a barrel. That's not far off from where the price was last Thursday. In other words, Brent futures traders more or less shrugged when WTI futures hit the skids.<
Learn how to read, and learn to understand how markets work, until then shut the fuck up you know nothing jerk
fuckn RickiBoi just wants to troll me, like the used diaper he is.
I feel bad for the people whose wallets are getting seriously hurt over the drop in demand and price of oil, but not that bad. How many of those same people have made a lot of money (or got into the business planning to make a lot) off the high price of oil and various oil based fuels over the last couple of decades because of high demand and prices?
I feel pretty good about the fact that I just filled up my gas tank today and thanks to my Kroger Rewards points saving me $1/gal I paid 23.9 cents per gallon. This was the first time I had gotten gas since March 12th and I paid a total of $3.58 to replace the gas that had lasted me over 5 weeks. Normally I spend between $175-200 per month on gas so I felt great about the price.
If only there was a club open that I could spend that extra money at.
^ You don't get the point this is a free market, when the supply shrinks enough the price will correlate, its called competition, in our capitalist system everyone seeks an advantage, sometimes the advantage is location, sometimes the advantage is a pandemic, sometimes the advantage is (insert your choice here)the oil price is not 10% of GDP nor is it responsible for 5% (actually closer to 22%) unemployment rate.
It is not a big deal and probably won't be a long term situation, unless some fools panic, and overreact to a market fluctuation.
^ It might be or it might not be there’s absolutely nothing you or I can do at this point, the smart money is always long term, and no matter how much you rant and rage this too shall pass eventually there will be a new day.
The price now is a predictor of the future, so why people are rejoicing is mind-boggling. A worldwide financial collapse will lead to a worldwide war. No one noticing the daily rise in tensions; actions; tests, etc. ?
25 latched onto "This is not Armageddon" and interpreted it as "Aw shucks, this is no big deal." Besides his poor grasp of the English language, he is also missing the key distinction between WTI and Brent crude - one is pumped here and the other is not. I guess we can add oil workers to the long list of people that 25 doesn't give a shit about so long as he has an excuse to hide in fear in his basement apartment while waiting for his Meals on Wheels delivery. Oops, I mean swanky bunker with the pool. ;)
Not a big deal unless your financial company was stupid enough to put your 401K in oil futures or you work on the oil/gas industry. This is why I have tech, retailers with food, and precious metals. But even with those, the longer we stay closed the worse everyone's retirement portfolios look. Even large liquidity will soon get chewed up by inflation. I guess I need to bulk up on toilet paper and ammo.
From u/SakanaToDoubutsu
---
Oil prices aren't negative, oil futures are negative.
A future is basically a way for a company to protect themselves from increased costs. For example, if the cost of a barrel of oil is $20, and companies expect that price to increase, a company like Holiday Gas Station might go to BP and say "I'll pay you $20 for a barrel now, but I don't want you to give me the oil until 6 months from now". If the price increases to say, $40 a barrel, Holiday Gas Station saves $20 on that barrel of oil.
Now Holiday won't gamble all of their product on futures, so they're always buying oil on the open market. So a company like Goldman Sachs will come in and buy some of those $20 futures. If the price goes up to $40, then they can say to someone like Holiday and say, "I bought these at $20, I'll sell them to you for $30". Goldman Sachs makes a $10 profit and Holiday saves $10 when they buy that barrel of fuel from BP.
Basically what's happening now is that Coronavirus is restricting people's movement, so there's a huge surplus of crude oil, and companies like Goldman Sachs can't find people to buy the futures. Goldman Sachs obviously doesn't have the facilities to store fuel, and there are stiff penalties that Goldman Sachs would have to pay BP if they refused to take ownership of the crude oil, so it's cheaper for them to write it all off as a loss and give it away.
I hope 25 is right. This does look pretty dire. The far transcends companies going out of business.
Think of all the large countries that oil is their only revenue. Some experts are flipping out on YouTube.
Interesting how some "experts" on YouTube are saying this is an unprecedented historical event which will change life as we know it while it is not even the top story in mainstream media.
===> "It means that June futures will likely devalue too because there is too much oil still being pumped everyday with no place to put it."
I hate to say I told you so, but June futures are already down 20% as-of this morning.
A lot of oil producers are about to go bankrupt, including the shale producers that provide us with energy independence.
moving on forward........ .........since things are different now.............. i been hearing predictions that home prices will drop 10 to 20 percent in these boom cities........ tampa, miami.... denver....san diego, vegas...........
Other articles discussing how bad things are for domestic oil right now. If only the domestic oil industry execs had the benefit of the profound advice that we enjoy here on tuscl, like "It's no big deal" and "Remember cut with traffic not across traffic." 😉
[view link][view link]
Now 25, that kind of response just makes you look angry and stupid, though perhaps that ship has already sailed given your dumb comments in this thread. ;)
And you keep trolling me despite I haven't commented all day, I guess you are still angry, and haven't gotten any smarter, despite the fact you've been laughed at across the internet.
C'mon now VM. I was letting him have the last word to short circuit his endless "That's what you are but what am I?" insult regurgitations or yet more painfully needy attempts to fold himself into perceived herd opinions. Like your namesake, he's compulsively incapable of walking away unless he thinks that he's had the last word - he's too emotionally invested after so heavily relying upon this thing for companionship. ;)
If you want to relive the glory days maybe do it in a thread dedicated just to him?
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