Oil $1 a barrel

[eagle1462010]

Some of this has to be driven by the financial futures markets. My guess is that someone is getting taken out, and margin positions are being cut. This makes no sense whatsoever.

They are taking out the Frackers perma aren't they??

A lot of them. Not all of them. Oil will be back above $40-$50 by 2022-23

What about the people that own oil stock for retirement...........now that it's negative..........That work for the oil companies

The stock market carnage already happened. The XLE was down 76% peak to trough, the OIH down 94%. That's worse than tech stocks in 00-02, and bank stocks in 07-09.

The OIH is barely down at the moment. This is typically bottoming action, though I hate to say it's the bottom.

As for the employees, there are going to be lots of layoffs.

Seems the shares I was thinking of are holding at the old values of $90 a share.......LOL

But the jobs are not looking so good.

 

[ZZ PUPPS]

Russia and the Saudis were trying to cripple US shale. Covid 19 was the coup de grace. Can you imagine holding a bunch of May 1000 barrel long contracts today? 20 to 30 to originally buy, then -30 to 40 to sell! That's a 50 to 70K loss PER contract and it ain't over until tomorrow if you're still holding.

 

[JGalt]

It's negative 37.06 now. Does that mean buy it and stick it in an empty pool?

That's an all-time record first.

 

[eagle1462010]

Why didn't they close trading ................that's my problem here............whey allow it to go negative.

 

[eagle1462010]

Fracking gonna get hosed and put under by the big boys................

So the big boys stay in complete control of all oil production.

And people on this thread ......many libs just don't get it...........or they do and don't care because they want Globalism.

 

[JGalt]

Fracking gonna get hosed and put under by the big boys................

So the big boys stay in complete control of all oil production.

And people on this thread ......many libs just don't get it...........or they do and don't care because they want Globalism.

If anything good comes out of oil going negative, it'll be that Russia's, Venezuela's, and Iran's economies will go belly up.

Serves them right, the bastards.

 

[Dont Taz Me Bro]

So what's so bad about cheaper oil? It's not like the oil companies are going to go broke, is it?

Think about that a little harder and you might be able to answer that question.

 

[Manonthestreet]

Nazi says she will stay on vacation until May 4, unless there is an emergency.

US oil prices turn negative as demand dries up

Coronavirus downturn has put major pressure on oil prices with demand slumping and storage running out.

finance.yahoo.com

So what's so bad about cheaper oil? It's not like the oil companies are going to go broke, is it?

No much of a market for drilling, and not much of a market on alternative energy with prices this low.
Ripple effect

Major oil companies have been pushing for a cap on oil production in Texas for a while. Seems that the market for new wells was killed by all that fracking in the past few years. Not my fault if they already drilled more wells than they need. You want to bail them out for bad management on their part?

Problem you have is the cause isn't bad management...it's bad govt...... Yes you will be bailing them out. Let's all sit on our ass some more and pretend everything is fine.

 

[eagle1462010]

So what's so bad about cheaper oil? It's not like the oil companies are going to go broke, is it?

Think about that a little harder and you might be able to answer that question.

While I have no problem with them hurting Russia and Iran......this will wipe out the competition in the United States......and the Big boys......will buy them up........then force wages down like they did after the 2008 crash......and screw the little guys.

 

[ZZ PUPPS]

Why didn't they close trading ................that's my problem here............whey allow it to go negative.

It's called price discovery. The market sets the price - the relationship between buyers and sellers, supply and demand. Today on that May contract, the market fell apart for some reason. Maybe a fund or market maker blew up.

On thing is for sure, the money flow mechanics led to forced margin call liquidation. Once trigger points were hit, volatility and momentum quants went to work and sold into an obviously ill-liquid market for that contract.
Like rates, contract prices can go negative. The market did what it was designed to do - price discovery that lead to executed trades. If the market had been closed, the longs would have been trapped. Their contract allows for them to trade it, not be frozen into it.

 

[Toro]

Russia and the Saudis were trying to cripple US shale. Covid 19 was the coup de grace. Can you imagine holding a bunch of May 1000 barrel long contracts today? 20 to 30 to originally buy, then -30 to 40 to sell! That's a 50 to 70K loss PER contract and it ain't over until tomorrow if you're still holding.

This is mostly COVID related. Net supply would have gone up by ~1MM bbl/d in the Saudi-Russia spat. Demand destruction from COVID is estimated to be as high as 30MM bbl/d. Given that demand was 100MM bbl/d prior to COVID, that's staggering.

 

[Dick Foster]

I damn well know some lunatic demo dumb ass is gonna come on here and blame it on Trump somehow. They'll never pass up this opportunity. That evil orange man is cornering the world's oil supply or some equally insane bullshit of that ilk. Just wait and see.

 

[flacaltenn]

Nazi says she will stay on vacation until May 4, unless there is an emergency.

US oil prices turn negative as demand dries up

Coronavirus downturn has put major pressure on oil prices with demand slumping and storage running out.

finance.yahoo.com

Well to be fair Trump told us all a week ago "He had handled all this oil feuding"... Guess APPARENTLY --- he did not...

I was floored when I turned on the Biz channel.. Thought it was an ERROR... But the update is about 3PM Central time, Oil went NEGATIVE to MINUS as in -$37/barrel.. You'd get PAID for taking it... Only time in your lifetimes you're gonna see anything that weird..

Must be oil futures investors preparing to leap off buildings ALL over the world right now...

 

[shimon]

We can get paid to store oil for our reserves, but Pelosi said no, she wants to pay $100 a barrel like she did last time.
View attachment 325815

We can get paid to store oil for our reserves, but Pelosi said no, she wants to pay $100 a barrel like she did last

We can get paid to store oil for our reserves, but Pelosi said no, she wants to pay $100 a barrel like she did last time.
View attachment 325815lol....

We can get paid to store oil for our reserves, but Pelosi said no, she wants to pay $100 a barrel like she did last time.
View attachment 325815

I guess we are truly in the messianic age then now that all the commodities are crashing . When they start throwing out the silver and gold into the streets because it’s useless we can always get a vagabond like Pelosi to store it in her 25000 dollar refrigerators after all she is really quite the charitable one isn’t she and it takes a lot of food to fill one of those suckers up which she possibly can’t consume by herself can she...

 

[flacaltenn]

Nazi says she will stay on vacation until May 4, unless there is an emergency.

US oil prices turn negative as demand dries up

Coronavirus downturn has put major pressure on oil prices with demand slumping and storage running out.

finance.yahoo.com

So what's so bad about cheaper oil? It's not like the oil companies are going to go broke, is it?

No much of a market for drilling, and not much of a market on alternative energy with prices this low.
Ripple effect

Major oil companies have been pushing for a cap on oil production in Texas for a while. Seems that the market for new wells was killed by all that fracking in the past few years. Not my fault if they already drilled more wells than they need. You want to bail them out for bad management on their part?

Problem you have is the cause isn't bad management...it's bad govt...... Yes you will be bailing them out. Let's all sit on our ass some more and pretend everything is fine.

They don't NEED a bailout... THese are FUTURES numbers.. Hasn't happened yet.. "THEY" -- meaning Saudi and Russia and a few others need to stop the circular firing squad and calm the fuck down...

 

[flacaltenn]

We can get paid to store oil for our reserves, but Pelosi said no, she wants to pay $100 a barrel like she did last time.
View attachment 325815

We can get paid to store oil for our reserves, but Pelosi said no, she wants to pay $100 a barrel like she did last

We can get paid to store oil for our reserves, but Pelosi said no, she wants to pay $100 a barrel like she did last time.
View attachment 325815lol....

We can get paid to store oil for our reserves, but Pelosi said no, she wants to pay $100 a barrel like she did last time.
View attachment 325815

I guess we are truly in the messianic age then now that all the commodities are crashing . When they start throwing out the silver and gold into the streets because it’s useless we can always get a vagabond like Pelosi to store it in her 25000 dollar refrigerators after all she is really quite the charitable one isn’t she and it takes a lot of food to fill one of those suckers up which she possibly can’t consume by herself can she...

Nothing will give Pelosi a clue on connecting with the general public... But not ALL commodities are crashing.. Just the ones that AREN'T in demand.. MOST are doing well and are seeing "crisis inflation"...

 

[ZZ PUPPS]

I damn well know some lunatic demo dumb ass is gonna come on here and blame it on Trump somehow. They'll never pass up this opportunity. That evil orange man is cornering the world's oil supply or some equally insane bullshit of that ilk. Just wait and see.

What we have is a "perfect storm", of sorts. A Ruskie/Saudi price war coupled with unheard of demand destruction from the shuttering of the world economy due to the virus.

 

[Litwin]

"
US oil futures drop below $0 for the first time
United States crude oil futures turned negative on Monday for the first time in history as storage space was filling up, discouraging buyers as weak economic data from Germany and Japan cast doubt on when fuel consumption will recover. "

Sounds like 1986-1991 all over again? , great news for free world !
Oil prices have fallen to the lowest since 1991 level . With cost of “black gold” at 15-23 dollars per barrel, the USSR economy collapsed,

and the sovok itself collapsed, and the "golden" horde ("russia") budget can only be fulfilled only with oil price at $ 42.4 and higher.

question: will Trump save his buddy Vova Putler and his agressive primitive empire ?

 

[Tom Paine 1949]

It seems to me U.S. fracking and especially the insane hydrocarbon “export industry” is really finished for now. Of course the U.S. can always engineer a physical war in the Gulf, or just put up huge unpopular tariffs to protect that octopus of U.S. oil mafia interests. War is a real likelihood I fear. Already sanctioned Iran might be the ostensible target, but the Gulf Oil monarchies will be the real targets.

I feel sorry for the jobs lost in Texas oil country, but the infrastructure is mostly there, and new small-sized companies will return if the price eventually rises. The industry has been nurtured artificially, the tie-in with military-industrial, finance capital, and imperial policy is so deep, it is hard to know whether to laugh or cry at this disaster. The sanctions against Iran and Venezuela, the pressure to stop Nordstream2, the destruction of Libya, Iraq and Syria, the horror and expense of it all — all upended by a virus (and the “free market”). The losses of futures traders are insignificant — the least of the world’s problems right now.

 

[EvilEyeFleegle]

"
US oil futures drop below $0 for the first time
United States crude oil futures turned negative on Monday for the first time in history as storage space was filling up, discouraging buyers as weak economic data from Germany and Japan cast doubt on when fuel consumption will recover. "

Sounds like 1986-1991 all over again? , great news for free world !
Oil prices have fallen to the lowest since 1991 level . With cost of “black gold” at 15-23 dollars per barrel, the USSR economy collapsed,
View attachment 325878

and the sovok itself collapsed, and the "golden" horde ("russia") budget can only be fulfilled only with oil price at $ 42.4 and higher.

question: will Trump save his buddy Vova Putler and his agressive primitive empire ?

Nah..Trump has too much on his hands just trying to save his buddys in Big Oil..right here in the US. The Oligarchs are on their own...