Negative Oil Price

Court Jester

Court Jester

Well-Known Member
Silver Stacker
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.
 
No storage space left means they are paying people to take crude. Russians have the gold stores to bankrupt US Shale and Saudi
 
66rounds said:
Petrol still needs to be refined. Don't hold your breath for 50c tank of fuel.
Click to expand...

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.
 
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
 
It's the future speculators that weren't expecting to take delivery that are now selling their contracts at a loss, not the producers
 
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
 
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.
 
SilverDJ said:
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.
Click to expand...
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
 
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