Negative Oil Price

Discussion in 'Markets & Economies' started by Court Jester, Apr 20, 2020.

  1. Court Jester

    Court Jester Well-Known Member Silver Stacker

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    so what does this mean, are producers paying for their oil to be taken now?

    how low do you think petrol will go.

    any one want to shed some light on this how can it be a negative price.
     
  2. 66rounds

    66rounds Well-Known Member Silver Stacker

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    Petrol still needs to be refined. Don't hold your breath for 50c tank of fuel.
     
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  3. 66rounds

    66rounds Well-Known Member Silver Stacker

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    No storage space left means they are paying people to take crude. Russians have the gold stores to bankrupt US Shale and Saudi
     
  4. slavaja

    slavaja Well-Known Member Silver Stacker

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    Maybe it costs more to store than to give it away
     
  5. 66rounds

    66rounds Well-Known Member Silver Stacker

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    crewy, Silver Soul and Court Jester like this.
  6. 66rounds

    66rounds Well-Known Member Silver Stacker

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  7. dozerz

    dozerz Well-Known Member Silver Stacker

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    ive just ordered a few barrels for the back shed in case the price recovers, they are paying me to take them :)
     
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  8. SilverDJ

    SilverDJ Well-Known Member

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    I think it briefly hit 50c at a couple of service stations here recently?
    But yeah, in general I would expect that. There are likely to be increased transportation costs in the current climate as well.
     
  9. openeyes

    openeyes Well-Known Member Silver Stacker

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    You might never see this again. WTI oil at -$15.92 USD. You read that right - negative prices. Oil produces paying people to take the oil off their hands. No where to store it. Won’t last long like this but wow just WOW
     
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  10. 66rounds

    66rounds Well-Known Member Silver Stacker

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    It's the future speculators that weren't expecting to take delivery that are now selling their contracts at a loss, not the producers
     
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  11. Holdfast

    Holdfast Well-Known Member Silver Stacker

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    So what does this mean?
    *Less income for those who sell that kind of product.
    *Bankruptcies
    *Takeovers
    *Margin calls driving the market lower.
    *Gold and silver headed lower (Short term)
    *Weakening USD
    *Fully operational Logistics companies may make savings if they are not hedged for their fuel requirements. (Better PE ratios, maybe)


    West Texas Intermediate, the US benchmark, traded as low as -$40.32 a barrel in a day of chaos in oil markets. The settlement price on Monday was -$37.63, compared to $18.27 on Friday. Traders capitulated in the face of limited access to storage capacity across the US, including the country’s main delivery point of Cushing, Oklahoma.
    https://www.ft.com/content/a5292644-958d-4065-92e8-ace55d766654
     
  12. 66rounds

    66rounds Well-Known Member Silver Stacker

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    Means none of those things. Most oil consumers buy contracts well in advance. Most contract prices are still $25 a barrel.

    All this means is some retard speculators have shit the bed and lost alot of money in one of the easiest to trade commodity markets known to man.
     
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  13. Court Jester

    Court Jester Well-Known Member Silver Stacker

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    Can I double like this

    Death To Imperalist America
     
  14. 66rounds

    66rounds Well-Known Member Silver Stacker

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    50c a litre? I would have filled up a few Jerry cans. One place near me is doing 80-89 cents a litre overnight and 99 cents during the day. Also do 109 a litre diesel which means I can finally fill up for under $70 again
     
  15. Court Jester

    Court Jester Well-Known Member Silver Stacker

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    forget jerry cans im thinking of buying a few 200L drums
     
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  16. openeyes

    openeyes Well-Known Member Silver Stacker

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    For a short time it looked like this

    upload_2020-4-21_11-11-17.png
     
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  17. Holdfast

    Holdfast Well-Known Member Silver Stacker

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    President Trump says he's filling up the USA emergency reserve for a good price.
    What will Australia do?
     
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  18. JulieW

    JulieW Well-Known Member Silver Stacker

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    Rely on America's?
     
  19. Court Jester

    Court Jester Well-Known Member Silver Stacker

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    assuming the chinese dont sink the tankers heading to us from them were all good
     
  20. openeyes

    openeyes Well-Known Member Silver Stacker

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    What can Australia do - it has no storage capability.
     

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