Banks/Money Managment

Ddays

Ddays

Hooked
TLife said:
What does that even mean? Someone will pay me $18.20 to take a barrel of oil?


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I don't pretend to fully understand the oil market, but basically oil producers are having to pay suppliers to take the extra oil because of the massive oversupply.

And it ended up closing at -$38

https://www.reuters.com/article/us-...ero-with-nowhere-to-store-crude-idUSKBN2222P3

https://www.theguardian.com/world/2...as-un-sounds-alarm-on-to-covid-19-relief-fund
 
Spazbyt

Spazbyt

Hooked
A little off topic but my wife was telling me about a article she read about a farmer who had to literally dump 100k worth of milk. All the restaurant closures and even worse the supermarkets putting limits on how much milk people can buy crushed the demand. what a waste. In 2020 you can't give milk or oil away.:doh:
 
OverlanderJK

OverlanderJK

Resident Smartass
Spazbyt said:
A little off topic but my wife was telling me about a article she read about a farmer who had to literally dump 100k worth of milk. All the restaurant closures and even worse the supermarkets putting limits on how much milk people can buy crushed the demand. what a waste. In 2020 you can't give milk or oil away.:doh:
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It’s not a demand issue as much as it is an issue with processing plants.


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Spazbyt

Spazbyt

Hooked
WJCO

WJCO

Meme King
A.J. said:
Well the oil prices went in the tank this morning as predicted.
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Ddays said:
Holy fuck! West Texas Intermediate is currently at $7.77 a barrel! :shock:
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JKbrick said:
It’s worse than that now
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littlebeas said:
That’s amazing [emoji15]
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Ddays said:
It totally crashed. It's below zero for the first time ever.

Edit: It's -18.20 now. Unbelievable.
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TLife said:
What does that even mean? Someone will pay me $18.20 to take a barrel of oil?
Click to expand...

Ddays said:
I don't pretend to fully understand the oil market, but basically oil producers are having to pay suppliers to take the extra oil because of the massive oversupply.
Click to expand...

If anyone cares to watch (17 minute video), Mike Maloney did a video with his perspective on the oil market last night. I tend to watch this guy now more than ever because I like the way he explains things and always has charts/data to try and keep it simpler to understand.

 
Elroy231

Elroy231

Active Member
As a child I grew up watching my dad on the oil rig. He was a rig operator. During the summer I would piss my mom off and she would make my dad take me with him to work. Apparently she didnt understand how much fun I had around all them roughnecks!!!!
Oil literally put food on our table and a roof over our head.
I cant believe the oil situation now. Such a huge hit for the economy along with everything else happening.

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JKbrick

JKbrick

Active Member
What happened to oil? Gas here jumped .50 something the last few days. I’m assuming the greedy fucks are anticipating the word open sign being turned to on?


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JPast

JPast

Member
JKbrick said:
What happened to oil? Gas here jumped .50 something the last few days. I’m assuming the greedy fucks are anticipating the word open sign being turned to on?


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June contracts are running at a relatively normal price which is probably what’s driving gas prices back up. The issue last month was the contracts held by commodity traders that are cash settled were closing in on expiration and with no ability for those people to take delivery they were having to dump them. Usually they can sell to refineries, storage centers, etc. but with the surplus those businesses weren’t buying the contracts for normal market value so the price tanked into the negative. It’s a definite possibility we wind up seeing the same thing happen at expiration for the current contract.


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JKbrick

JKbrick

Active Member
JPast said:
June contracts are running at a relatively normal price which is probably what’s driving gas prices back up. The issue last month was the contracts held by commodity traders that are cash settled were closing in on expiration and with no ability for those people to take delivery they were having to dump them. Usually they can sell to refineries, storage centers, etc. but with the surplus those businesses weren’t buying the contracts for normal market value so the price tanked into the negative. It’s a definite possibility we wind up seeing the same thing happen at expiration for the current contract.


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Went up .20 again today. $1.79 now


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JKbrick

JKbrick

Active Member
JPast said:
That's about as low as it got where I am, but 10 minutes away in the next town over it was $1.52 yesterday. Love a good 30 cent difference in gas prices within about 3 miles.
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Yep where my wife works just north of us it was $1.01, never got below $1.23 here I believe.


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jesse3638

jesse3638

Hooked
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