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Oil Futures Negative
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It’s mainly a storage issue.
European Brent fell to $27, but West Texas Intermediate hit $11. That’s the May futures contract, which requires taking delivery (or selling on) in Cushing Oklahoma, and Cushing’s full. Brent crude can be delivered to multiple locations, so very little storage concern.
Sell May ($11), buy June ($23).Trust me?
I'm an economist!
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Originally posted by snapper View PostHow about the costs of 'fracking' and the Muscovite spot price (and income). From a basic glance it makes fracking unprofitable and will have some nasty consequences for Muscovite revenue.
At $11/bbl, a lot of extraction activity stops.
But, we aren't at $11/bbl on the spot market, not yet.Trust me?
I'm an economist!
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Originally posted by snapper View PostWhat are the consequences? How long will it last?
It's a warning shot
Economies aren't going to need much oil any time soon sending sellers into more debt.
This also means its easier for economies to recover as fuel costs are rock bottom.
That's the upside.
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Originally posted by Double Edge View PostBad times for sellers no doubt.
The part where the seller has to pay the buyer to take the oil was a surprise : )Trust me?
I'm an economist!
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So what is the moral of the story ?
Russian & Saudi oil producers having a go at each other and in turn trying to bankrupt American frackers end up getting hurt too.
Question is how badly have they hurt those frackers
What does this mean for US Saudi relations.
Purely business nothing personal ?
Attacking American energy self sufficiency isn't going to go down well.Last edited by Double Edge; 23 Apr 20,, 22:44.
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Originally posted by Double Edge View PostSo what is the moral of the story ?
Russian & Saudi oil producers having a go at each other and in turn trying to bankrupt American frackers end up getting hurt too.
Question is how badly have they hurt those frackers
What does this mean for US Saudi relations.
Purely business nothing personal ?
Attacking American energy self sufficiency isn't going to go down well.Trust me?
I'm an economist!
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This fact would not have come about but for the actions of those two.
There is a context here, this fact didn't just happen on its own.
A price war at the outset of a pandemic ?
I wonder what they are thinking now.
US-Saudi oil clash sets the stage for future epic battle | WION | Apr 15 2020
An immediate crisis has been averted with an agreement on Sunday, April 12 between members of the Organisation of Oil Exporting Countries (OPEC) and non-OPEC producers to cut production by some 10 million barrels a day.
But 13 US Republican Congressmen from oil-producing states put Saudi Arabia on notice in a two-hour phone call with Saudi Energy Minister Abdulaziz bin Salman a day after the agreement.
“While we appreciate them taking the first step toward fixing the problem they helped create, the Saudis spent over a month waging war on American oil producers, all while our troops protected theirs. That’s not how friends treat friends. Their actions were inexcusable and won’t be forgotten. Saudi Arabia’s next steps will determine whether our strategic partnership is salvageable,” said North Dakota Senator Kevin Cramer
Last edited by Double Edge; 24 Apr 20,, 12:00.
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price at the pump today in long island was 2 bucks for regular, about a buck less than usually, but still not in negative range"Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote!" B. Franklin
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Originally posted by omon View Postprice at the pump today in long island was 2 bucks for regular, about a buck less than usually, but still not in negative rangeLast edited by tbm3fan; 24 Apr 20,, 21:59.
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Originally posted by omon View Postprice at the pump today in long island was 2 bucks for regular, about a buck less than usually, but still not in negative range
You will not - ever - see gasoline being "sold" at the pump at negative prices.“He was the most prodigious personification of all human inferiorities. He was an utterly incapable, unadapted, irresponsible, psychopathic personality, full of empty, infantile fantasies, but cursed with the keen intuition of a rat or a guttersnipe. He represented the shadow, the inferior part of everybody’s personality, in an overwhelming degree, and this was another reason why they fell for him.”
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