oil is $-25 a barrel?

[The_Dude]

WTF is going on here?

[VatorMan]

OPEC is trying to shut the US production down. It may work.

[z06psi]

Actually Saudi Arabia and Russia are in a pissing match.


Plus demand right now is almost nothing.

[BOTY]

Originally Posted by VatorMan

OPEC is trying to shut the US production down. It may work.

[Loco Vette]

Originally Posted by VatorMan

OPEC is trying to shut the US production down. It may work.

Originally Posted by BOTY

Until price goes back up. A few producers may shut down but unless the anti-oil people get the rules changed the wells will still be there and when the price supports them again they will go right back into production.

[boracayjohnny]

Originally Posted by The_Dude

WTF is going on here?

The people in countries around the world are not driving. The oil "Pipeline" is still working. Thus, a supply vs demand curve.

In the future, you'll get hassled on the street by some skeezy dude wanting to sell you a gallon of gas, some knock off sunglasses, or an authentic Folex watch.

[Stangkiller]

Originally Posted by Loco Vette

Until price goes back up. A few producers may shut down but unless the anti-oil people get the rules changed the wells will still be there and when the price supports them again they will go right back into production.

Some wells shut down and restart better than others. From what I Understand fracking works well for turning on and off but more conventional wells may not restart so easily.

[DJ_Critterus]

Originally Posted by Loco Vette

Until price goes back up. A few producers may shut down but unless the anti-oil people get the rules changed the wells will still be there and when the price supports them again they will go right back into production.

I jsut bought a shit load of Haliburton sock since it tanked. It'll go back up

[MrPeabody]

It's obvious that the oil companies need to switch to making toilet paper.

[Aerovette]

The time to buy draws near.

[Mick]

Originally Posted by z06psi

Actually Saudi Arabia and Russia are in a pissing match.


Plus demand right now is almost nothing.

Basically this. Disruption like this has been coming for a while. I wish I knew where it would all end up, because if I did, none of you bozos would ever hear from me again as I chillaxed on my private island.

There have been numerous articles about "at the rack" pricing of gasoline plummeting. I think one was posted here.

Do we still think it is a great idea to leave the economy shut down until September or later?

[Mick]

Originally Posted by Stangkiller

Some wells shut down and restart better than others. From what I Understand fracking works well for turning on and off but more conventional wells may not restart so easily.

For traditional wells, the right answer is "it depends". A mature well is easy to shut down and re-start later. The problem is, if you shut yours down, and your neighboring wells keep pumping, they will be essentially eating your lunch.

Wells used for fracking can be shut down, and restarted later, but there is a substantial one-time cost to doing so. I'm sure the folks who do this for a living have it worked out down to the last penny.

[Datawiz]

Originally Posted by The_Dude

WTF is going on here?

Oil is a commodity. The price you saw on the .net today was for the May delivery contract. Basically if you wanted to unload a barrel of oil, you'd have to pay someone to take it as there is no longer any place to store oil. Tomorrow the price will reflect the June contract and it'll likely be in the 20's per bbl.

[boracayjohnny]

[JRD77VET]

All I know is I purchased heating oil last week. 588 gallons @ $1.529

It may come down some more under what I paid but I am happy with my purchase

[higgyburners]

Originally Posted by Stangkiller

Some wells shut down and restart better than others. From what I Understand fracking works well for turning on and off but more conventional wells may not restart so easily.

I wonder if some companies restart better than others....or if some just wont restart at all.

Originally Posted by Mick

Do we still think it is a great idea to leave the economy shut down until September or later?

Absolutely not....our economy can not sustain that kind of timeline...I don't think any country could. It will take another 4 years for Trump to dig us out of this mess.....

[Wathen1955]

Today it's -$36.73 a barrel. With prices like this, why hasn't the government or even local states buy oil and store it. You know it will go back up again.

U.S. oil prices plummeted in historic fashion Monday, crashing below zero as traders unloaded positions ahead of the May contract's Tuesday expiration.

West Texas Intermediate crude oil futures for May delivery cratered by 305 percent to -$36.73 a barrel. At a price below zero, buyers would be paid to take delivery as there are costs associated with transportation and storage. The selling had WTI on track to close at its lowest level since recordkeeping began in March 1983, according to Dow Jones Market Data.

The June contract was trading lower by 18 percent at $20.43 a barrel.

The May contract is a “horror show” and “heading into the worst delivery situation in history,” Phil Flynn, senior market analyst at Price Group Futures, told FOX Business. “With demand still dead and OPEC+ cuts not hitting fast enough, the market looks like it has no bottom.”

https://news.yahoo.com/oil-crashes-l...113552445.html

[The_Dude]

Originally Posted by Wathen1955

Today it's -$36.73 a barrel. With prices like this, why hasn't the government or even local states buy oil and store it. You know it will go back up again.


https://news.yahoo.com/oil-crashes-l...113552445.html

They're much smarter than we are. They're waiting for the bottom.

[Mick]

Originally Posted by Wathen1955

Today it's -$36.73 a barrel. With prices like this, why hasn't the government or even local states buy oil and store it. You know it will go back up again.

I certainly don't know, but my guess would be they have no place to put it.

1 futures contract is for 1,000 US barrels of crude oil, or 42,000 gallons. The price is stated on "per barrel" terms, so if you "buy" one contract, you'll get paid $37,000 as of yesterday's close. Sounds like a good deal, but where do you put 42,000 gallons of some really nasty shit so you can sit on it until the price comes back?

[Aerovette]

When can I expect to be paid for barrels I am willing to take?