Has anyone on SS backed up the truck?

That's A LOT of floating oil storage.
93702678_10158153946666678_1961887721613950976_n.jpg

they could last >90 days, so even with oil cut of output starting in May 2020 etc, the float could last up to Aug 2020...


Singapore oil trader Hin Leong owes banks at least $4.25 billion
https://www.straitstimes.com/business/companies-markets/singapore-oil-trader-hin-leong-owes-banks-at-least-425-billion
 
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Alloy said:
No backing up the truck. Enjoying the tube of Roos I bought just before the crisis. It's a mistake to pay these premiums for retail physical right now – you'll lose money.
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Certainly don't go chasing high premiums for metal in your hand right now, as you can still put orders in for physical at most places at a price that's pretty reasonable (even cheap) compared to recent times (e.g. 10oz ABC for $291), and it'll get to you eventually in a couple of months. Mad Max isn't going to happen in the meantime.
 
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sgbuyer said:
Thanks for the interesting view. I first came to know contango from reports saying that oil is in contango because there's no where to store the excess oil so people had to dump oil hence the plunging spot.

Am I right to say if backwardation happens, the price for SIJ20 (Apr '20) will be lower than SIY00 (Cash)?

Do you know how the future price is determined?

https://www.barchart.com/futures/quotes/SI*0/futures-prices
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that old model was build (on cost of spot + cost of carry = futures prices )
now there are option, as to take delivery at the moment notice, while the owner paying the tanker floating fee lol
buying futures oil with the clause to set the delivery dates, options +

there are so many synthetic, just like covid19 with coronavirus+Aids
 
You should understand this: there was an economist on the gold and silver media circuit who was “Mr Backwardation” around 10 years ago now. He must be almost a fossil now.

I gave up long ago on those who talk of contango and backwardation. These are bamboozling catchwords and anyone who magics them up needs to account for the abject failure last time they did.
 
President Trump said:
I think it is possible that the stock market will have a second wave of selling and maybe another liquidation event. I will be looking for the "backwardtion" signal to buy. If anyone on here, particularly a commodity trader has an opinion on this view, it would good to hear.
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I think we're still in the deflationary phase. It's almost certain that there will be another wave of stock market selling.
 
sgbuyer said:
I think we're still in the deflationary phase. It's almost certain that there will be another wave of stock market selling.
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the oil price would bottom soon, and with the trillions being released by fed-treasury, very soon prices would incorporate those high flying inflation in no time, since many supply have been terminated, as in the video of telling farmers to give up / quit etc
the end of deflation turn to inflation is just a moment without notice, the same way a bear market turn into a bull market
 
sgbuyer said:
I think we're still in the deflationary phase. It's almost certain that there will be another wave of stock market selling.
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+1
In addition, PE ratios will be disturbing, poor dividends or no dividends.:eek: The projections won't be too good.o_O

Playing the market for a cap gain will be like a Meerkat on patrol.:D ;)
 
With so much money printing, there has to eventually be inflation, but it is still too early. For now, too many jobs lost, too many businesses destroyed for inflation to take hold. All this destruction and lack of demand has to be reflected in the stock market (which I agree will have a second wave down). In the real economy, a lack of spending/demand and growth will cause interest rates to stay at zero and the printing presses running. Eventually the additional supply of money to those who can still spend will be a greater force even than the millions who have to reduce spending, and the inflationary period will begin the amount that has been printed cannot be overstated. But, given people can't spend even if they want to and in the short term will have income concerns, inflation is not even on the horizon yet. None of us have a crystal ball so everyone is entitled to a market opinion mine is: 1. short stock indexes the bounce is insane, and 2. buy PM. But hold onto either of these positions too long and your sure to lose money eventually. This is not a matter of stacking its a trading opinion...
 
there is no change on transport cost yet, but food prices on grab and food panda deliveries are close to double
pump prices did not fall as much, but people with cars do afford in majority here

McDonald's Singapore suspends all restaurant operations including delivery and drive-thru until May 4

face mask / hand sanitizer prices did not drop back much 3x+ before the event
 
supply shortages causing food price increases could be a problem in some places and I haven't read much about this yet.
 
President Trump said:
supply shortages causing food price increases could be a problem in some places and I haven't read much about this yet.
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The rising food prices is going to cause some hardship in developing countries. Even in China, outside of the 1st and 2nd tier cities, it's going to be pretty hard if your household is just earning $1000 a month and $600 goes into the mortgage. A lot of people don't realise that the prices of basic food, rice, wheat, noodles, eggs, chicken, beef, pork, milk is not that much different in most cities worldwide with the exception of only a couple countries like India, Pakistan, some middle eastern and African countries. I've seen some of the supermarket food prices in the UK and Europe. They are way cheaper than in China and many parts of Asia.
 
sgbuyer said:
The rising food prices is going to cause some hardship in developing countries. Even in China, outside of the 1st and 2nd tier cities, it's going to be pretty hard if your household is just earning $1000 a month and $600 goes into the mortgage. A lot of people don't realise that the prices of basic food, rice, wheat, noodles, eggs, chicken, beef, pork, milk is not that much different in most cities worldwide with the exception of only a couple countries like India, Pakistan, some middle eastern and African countries. I've seen some of the supermarket food prices in the UK and Europe. They are way cheaper than in China and many parts of Asia.
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Mainland Chines are getting slammed by food prices at the moment, very large price increases all around on their staples from what I have read online.
 
Food inflation has been rising steadily here in the us and once everyone starts spending those free trumpbama checks prices will start increasing.
Checks sent directly to the public enters the economy instantly and wont be good for the govt fed sheeple.
 
we have government pay out $600 for citizens, but covid19 violations such as eating at a hawker center is $300 and failure to wear mask in public is also simple $300
 
alor said:
the oil price would bottom soon, and with the trillions being released by fed-treasury, very soon prices would incorporate those high flying inflation in no time, since many supply have been terminated, as in the video of telling farmers to give up / quit etc
the end of deflation turn to inflation is just a moment without notice, the same way a bear market turn into a bull market
Click to expand...

Oil is now $2 per barrel, but I can't see a way to buy. There's no SLV or GLD equivalent for oil!
 
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