Oil price

[HawkHybrid]

2 hours ago, mr-dead said:

oil prices now negative at -$11.42

wonder how much they'll pay me to fill the lambo tank and relieve some of those storage issues

 

surely a negative price on a commodity must be a sign of manipulation(suppression) ?

where are all the conspiracy theories for this?

 

HH

[silverdocket]

29 minutes ago, Abyss said:

 

Brilliant. Many laughed at him for years... Who's laughing now. Mike got me interested in P.M

[Abyss]

26 minutes ago, HawkHybrid said:

surely a negative price on a commodity must be a sign of manipulation(suppression) ?

where are all the conspiracy theories for this?

Strange because you have the CME CL Futures May contract -$40 low today but the June (current one where the trading volume resides) lowest price today was $20.18. CME would never allow a commodity to go below zero I did not even think that was possible.

Something gone astray during the Crude Oil Futures (CL May) contract expires 21st April. I have no idea what that could......

[GoldenPhil]

A total collapse for May oil prices. This is massive.

https://www.nytimes.com/2020/04/20/business/stock-market-live-trading-coronavirus.html

This could trigger deflation across almost every sector as almost everything relies on oil at some point in its production or distribution.  Cheap oil. Cheap goods  lower prices. Mass deflation followed by inflation perhaps even hyperinflation.  Gold could halve in value before going to the moon. 

[Booky586]

I had to screenshot this chart, just for posterity

[Abyss]

Most important question do you think if I went to my local BP petrol station and filled up I could drive off without paying pointing the service attendant to chart of oil saying look oil is now free?

[Oldun]

Free energy. Greta got her wish.

[GoldenPhil]

Just now, Abyss said:

Most important question do you think if I went to my local BP petrol station and filled up I could drive off without paying pointing the service attendant to chart of oil saying look oil is now free?

No because they are selling last years oil lol

But joking aside this will have bankrupt some spread betters. Poor guys.

What we need to watch closely is the June price for oil now. Will it also collapse? Guess the oversupply for May will have a knock on effect.

[HawkHybrid]

33 minutes ago, Abyss said:

Strange because you have the CME CL Futures May contract -$40 low today but the June (current one where the trading volume resides) lowest price today was $20.18. CME would never allow a commodity to go below zero I did not even think that was possible.

Something gone astray during the Crude Oil Futures (CL May) contract expires 21st April. I have no idea what that could......

 

specifically only the wti may contracts(brent dropped but did not collapse).

what it is telling us is that america has reduced oil consumption so much

that the storage facilities for surplus is pretty much full. rolling daily oil did

not get anywhere near zero. 

 

HH

[AuricGoldfinger]

Just crazy. I guess this is what happens when the world stands still. The war on coronavirus is the only war that doesn’t require oil. Maybe they should invent some petrol powered ventilators

[Oldun]

 

[GoldenPhil]

*knock at the door*

Hello

Hi how can I help you?

I've got your delivery.

I didn't order anything

 This is your name and address?

Yes that's me.

Right bring it in lads

Wtf is that? 

It's the 50 barrels of oil you promised to take delivery of. 

[GoldenPhil]

5 hours ago, silverdocket said:

Brilliant. Many laughed at him for years... Who's laughing now. Mike got me interested in P.M

Best comment the video

 

[Stu]

Then US has enjoyed and greatly benefited from having the privilege of "managing" the worlds reserve currency. This privilege, as all others have in the past, has been abused. All those dollars will one day come flooding home, it is only a question of when. 

[AurumArgenti]

What's the chances this will shut up Sturgeon Krankie for a while? She's obsessed with breaking up to UK and oil was a good part of her ammo?

[Abyss]

Now the current CME June futures contract for oil fallen off a cliff currently $11.79. 50% drop in oil in under 1 hour.

[sovereignsteve]

I know nothing about oil wells but presumably if the price of crude has gone negative, there must be wells that can't practicably be stopped spewing the stuff out. So what's going to happen to it if they can't offload it to anyone?

Unless it's simply that once they turn the wells off it is either very difficult or expensive to re-open them?

[FlorinCollector]

@sovereignsteve watching on cnbc they said how if they turn everything off there is still a backlog in the supply chain that will need emptied. 

For if they cant store it there solution not sure if a suggestion or true was to burn it. 

[sovereignsteve]

7 minutes ago, JosephM said:

@sovereignsteve watching on cnbc they said how if they turn everything off there is still a backlog in the supply chain that will need emptied. 

For if they cant store it there solution not sure if a suggestion or true was to burn it. 

Just the fact that if a producer is paying someone to take it away, it must be very inconvenient or expensive in some way not to do that.

[Oldun]

Simple solution. Restart the economy.

[HawkHybrid]

8 minutes ago, sovereignsteve said:

I know nothing about oil wells but presumably if the price of crude has gone negative, there must be wells that can't practicably be stopped spewing the stuff out. So what's going to happen to it if they can't offload it to anyone?

Unless it's simply that once they turn the wells off it is either very difficult or expensive to re-open them?

 

it's a futures contract that went negative. the oil producers have

already sold the contract to speculators and taken payment. it's

an already done deal on the producers side. there will however

likely to be less speculator demand for further futures contracts.

(eg june contract)

 

HH

[sovereignsteve]

Ah I see, it's just some speculators taking a loss

[HawkHybrid]

10 hours ago, Oldun said:

 

 

'and if this can happen in oil, it can certainly happen in gold'

I disagree with this. the only reason why it's happening in oil is

because physical storage of oil in such large quantities can be

problematic. for gold however where all of the worlds gold can

be stored inside of a large building, taking physical delivery will

unlikely ever be a problem.

 

HH

[Oldun]

9 hours ago, HawkHybrid said:

 

'and if this can happen in oil, it can certainly happen in gold'

I disagree with this. the only reason why it's happening in oil is

because physical storage of oil in such large quantities can be

problematic. for gold however where all of the worlds gold can

be stored inside of a large building, taking physical delivery will

unlikely ever be a problem.

 

HH

If you disagree with the fella, no problem here. Have at it. Maybe it is best for you to actually visit his youtube site and argue your point there with the actual author ?

[KDave]

Oil is a commodity, it is not 'black gold' just as silver is not 'money' either. For gold to do what oil has done it will be related to the dollar, one day perhaps but not yet. 

I see the June contracts are gone and spot WTI price is $9 - this is zero cash flow time for the smaller companies and many will now go under without bailouts. The major companies have downstream revenue (products from crude) and also other commodity diversification such as gas to see them through. 

Stock prices are holding up annoyingly well considering, where are my £9 shell shares?