OT Oil Prices down to $1 a barrel!

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But this can't be happening anyway, because our Dear Leader recently negotiated a truce between Saudi Arabia and Russia so that oil prices would rise.
Therefore, this stuff about $0 oil is FAKE NEWS!

barfo
 
The barrel is worth more than the oil and toilet paper will rival gold for pound for pound value!
 
kjironman1 said:
Right now -$36 a barrel so i guess they are gonna pay me to fill my truck?
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No, but if you want to sell me the gas that's in your truck, I'll take $36 for it. That's my final offer.

barfo
 
WesleyMatthews said:
I understand it going to $1 or even a bit negative but I don't get how its hitting negative $35...
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Doesn't make sense at all. Speculators have to be confused? How do you buy a commodity that has negative value? How could you ever push the price back up?
 
kjironman1 said:
Doesn't make sense at all. Speculators have to be confused? How do you buy a commodity that has negative value? How could you ever push the price back up?
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Price goes back up when either demand rises or production falls.

If I had an empty oil tanker I'd forgotten about until now, I'd certainly fill it with some -$35 oil, and wait until the price improves.

barfo
 
barfo said:
Store it where? The reason the price has gone to zero is that the storage is full already.

barfo
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Seems like the answer is simple. Since the covid is gonna extinct us anyway, we should just burn the stuff as fast as possible and store it in the atmosphere like our original plan, just quicker.
 
Just saw on CNBC say that it would cost you and additional $35 just to store the oil. Don’t understand that concept.
 
kjironman1 said:
Doesn't make sense at all. Speculators have to be confused? How do you buy a commodity that has negative value? How could you ever push the price back up?
Click to expand...

Trying to wrap my mind around this; I suppose someone who bought the oil previously in a futures contract but had no way to physically store it. They are in a contract to exchange cash for oil in May and the contract is finalizing today. They probably planned to sell at a profit when prices increased, however prices never increased.

Now they need to buy storage for their item or sell the product. The price to sell (dispose) of it is $35 a barrel.

If they don't fulfill the contract the trading platform cancels their account and takes their cash reserves. So they cant just walk away from the initial futures purchase.
 
The govt should buy it up and use it to blacktop roads and fix some infrastructure long overdue....treat railroad ties, whatever. Use it to create jobs would be a thought
 
WesleyMatthews said:
Trying to wrap my mind around this; I suppose someone who bought the oil previously in a futures contract but had no way to physically store it. They are in a contract to exchange cash for oil in May and the contract is finalizing today. They probably planned to sell at a profit when prices increased, however prices never increased.

Now they need to buy storage for their item or sell the product. The price to sell (dispose) of it is $35 a barrel.
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Awe okay that makes sense now. Was wondering how it cost an additional. So they put a receipt for x amount of future barriers. Then the barrels drop to zero, so they owe the invoice price + $35 per barrel storage.
 
I could start my own Labrea tarpit attraction to get some tourist bucks....fill a hole with oil and sink some madrone branches into it to look like dinosaur bones! Visit riverman pits! 20 dollar admission...babies free!
 
I had a 3 week road trip planned for next month. My plans were to visit Nashville, Memphis and the Mississippi Blues Trail. It was bad enough that I had to cancel it but I’m even more pissed now that gas is so cheap. It was over $3 a gallon when I planned the thing. The savings would have bought a lot of beer on the road. But then, they’ll buy a lot of beer at home too, I guess........
 
UncleCliffy'sDaddy said:
I had a 3 week road trip planned for next month. My plans were to visit Nashville, Memphis and the Mississippi Blues Trail. It was bad enough that I had to cancel it but I’m even more pissed now that gas is so cheap. It was over $3 a gallon when I planned the thing. The savings would have bought a lot of beer on the road. But then, they’ll buy a lot of beer at home too, I guess........
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Sorry you had to cancel, that sounds like a great road trip!
Hope you are able to reschedule.
 
magnifier661 said:
The US should buy every dip of crude oil and store it.
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lmao, for what?

US already is the largest producer of crude oil, in a foolish push by Trump to start producing more. We already have too much supply and not enough demand, and our dumbass president doesn't understand the basics of economics.
 
riverman said:
I could start my own Labrea tarpit attraction to get some tourist bucks....fill a hole with oil and sink some madrone branches into it to look like dinosaur bones! Visit riverman pits! 20 dollar admission...babies free!
Click to expand...

Keystone already tried that in North Dakota and not sure it worked out to well for them.
 
riverman said:
I could start my own Labrea tarpit attraction to get some tourist bucks....fill a hole with oil and sink some madrone branches into it to look like dinosaur bones! Visit riverman pits! 20 dollar admission...babies free!
Click to expand...

If you are going to give away babies you are going to have to keep a lot of women pregnant to keep up with the demand. This scheme seems very labor-intensive.

barfo
 
I can't even imagine the amount of layoffs this will cause. Just horrible
 
barfo said:
If you are going to give away babies you are going to have to keep a lot of women pregnant to keep up with the demand. This scheme seems very labor-intensive.

barfo
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baby pangolins your silly goose!!
 
illmatic99 said:
lmao, for what?

US already is the largest producer of crude oil, in a foolish push by Trump to start producing more. We already have too much supply and not enough demand, and our dumbass president doesn't understand the basics of economics.
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Oh I forgot. Orange Man Monster should never buy anything for discount. He’s the devil!
 
He tried to buy a month ago when prices wrench higher, to stock the reserves. Was blocked by Democrats, I believe.
Art of the deal?
 
RR7 said:
He tried to buy a month ago when prices wrench higher, to stock the reserves. Was blocked by Democrats, I believe.
Art of the deal?
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Yep, congress can screw up any deal. They control funding and they (House Democrats) refuse to give the President a win, so... :dunno:
 
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