Hotone + 412 April 20, 2020 (edited) Omg! How much lower can it go! https://oilprice.com/Energy/Oil-Prices/US-Oil-Prices-Fall-To-11-Per-Barrel-In-Historic-Crash.html Edited April 20, 2020 by Hotone Quote Share this post Link to post Share on other sites
surrept33 + 609 st April 20, 2020 Briefly $-37.58: https://www.marketwatch.com/story/us-oils-may-contract-has-just-gone-negative-plunging-154-and-trading-at-negative-10-a-barrel-2020-04-20?mod=mw_quote_news 1 Quote Share this post Link to post Share on other sites
El Nikko + 2,145 nb April 20, 2020 What the hell???? Quote Share this post Link to post Share on other sites
El Nikko + 2,145 nb April 20, 2020 Is that real?? Quote Share this post Link to post Share on other sites
rjbailey 0 rb April 20, 2020 yep, they will want to keep drilling , cost to much to stop and then start again once demand goes up, watch for july contracts.... its going to be pretty volitial on the CFDs trading sites, just hang in there... Quote Share this post Link to post Share on other sites
surrept33 + 609 st April 20, 2020 23 minutes ago, El Nikko said: Is that real?? Yes, but the may contract expires tomorrow. The june contract has a lot more volume, and hasn't gone down as much. Also Brent has not gone down much: https://www.forbes.com/sites/simonconstable/2020/04/20/the-real-reason-oil-futures-plunged-on-monday-isnt-what-you-think/#3270a4a59e97 1 Quote Share this post Link to post Share on other sites
surrept33 + 609 st April 20, 2020 In other words, any longs who can't take physical delivery in Cushing for May have already rolled to the June contract. It's why it has a lot more activity than the current front month. Those who still had the front month are desperate get rid of it before expiry, which is why the price got bidded down to negative. Most sites only display the front month future price or the synthetic "spot price", which is not a real price. The most active future right now is June, not May so it should have long lasting repercussions to market participants. Still, it's historic since it's never happened with WTI. 1 1 Quote Share this post Link to post Share on other sites
HermitMunster + 146 April 20, 2020 Just dump the COVID patients off of the cruiseliners and aircraft carriers and store the oil there. Problem solved. Vote for me in November. 1 1 Quote Share this post Link to post Share on other sites
Piotr Berman + 82 April 20, 2020 (edited) Carrier ships for ore (iron ore, alumina etc.) could be easier to adapt. Ore itself can be easily stored in heaps. I can even offer my bathtub for a reasonable fee. Thinking about it, most homes have more than one bathtub... Edited April 20, 2020 by Piotr Berman added sentence 3 Quote Share this post Link to post Share on other sites
Dan Warnick + 6,100 April 20, 2020 Stocks tank as oil falls below zero for first time ever: WTI oil plunged 305% to -$36.73 a barrel as demand remains scarce Ongoing concerns over swelling oil inventories, with little demand to ease the pile up due to the ongoing fallout from the coronavirus, sent West Texas Intermediate crude for May delivery plunging 305 percent to a record low -$36.73 per barrel. At a price below zero, buyers would be paid to take delivery as there are costs associated with transportation and storage. Early indicators show oil may slide deeper into negative territory. OIL CRASHES BELOW ZERO The plunge in crude prices pressured oil majors Exxon Mobil and Chevron, which were the biggest decliners among Dow components. Elsewhere in the space, oil services provider Halliburton lost $1.02 billion in the first quarter and said it would cut costs by $1 billion as the crash in oil prices has decimated investment. Those shares bucked the downtrend inching higher. Quote Share this post Link to post Share on other sites
Hotone + 412 April 20, 2020 Putting tariffs on foreign oil is not going to restore US oil industry. Trump is going to have to issue an executive order BANNING all imports of foreign oil. 1 1 Quote Share this post Link to post Share on other sites
Ward Smith + 6,615 April 21, 2020 (edited) This price crash isn't what you think It's all about physical delivery problems Edited April 21, 2020 by Ward Smith 1 1 Quote Share this post Link to post Share on other sites
Gerry Maddoux + 3,627 GM April 21, 2020 18 minutes ago, Ward Smith said: It's all about physical delivery problems Where are all those guys who were figuring out places to store oil in JUST this sort of environment? Did anyone lease a hundred rail tankers and move them to the nearest spur for delivery today? Be a chance to get WTI absolutely free, pay a buck a barrel to truck to the rail tankers, another few to store it. Hmmmmm. Guess they're all busy with logistics. 1 Quote Share this post Link to post Share on other sites
Old-Ruffneck + 1,239 er April 21, 2020 1 hour ago, Gerry Maddoux said: Where are all those guys who were figuring out places to store oil in JUST this sort of environment? Did anyone lease a hundred rail tankers and move them to the nearest spur for delivery today? Be a chance to get WTI absolutely free, pay a buck a barrel to truck to the rail tankers, another few to store it. Hmmmmm. Guess they're all busy with logistics. Gerry, them folks are lost in the mix too. Still pumping, still receiving offshore terminals, and only the SPR w/70mb capacity left. Not looking good for the home team but me being optimistic and thinking by September as the World gets back to work we'll start chewing into the reserves. The VLCC's coming in from KSA need turned around and sent back to their ports. 2 Quote Share this post Link to post Share on other sites
0R0 + 6,251 April 21, 2020 4 hours ago, Hotone said: Putting tariffs on foreign oil is not going to restore US oil industry. Trump is going to have to issue an executive order BANNING all imports of foreign oil. Can not do that. Without the heavy oils the LTO is essentially all gasoline and no diesel. So LTO is dependent on imported oil. An import ban is entirely counterproductive. The two oils are not interchangeable. 1 3 Quote Share this post Link to post Share on other sites
Ward Smith + 6,615 April 21, 2020 2 hours ago, Gerry Maddoux said: Where are all those guys who were figuring out places to store oil in JUST this sort of environment? Did anyone lease a hundred rail tankers and move them to the nearest spur for delivery today? Be a chance to get WTI absolutely free, pay a buck a barrel to truck to the rail tankers, another few to store it. Hmmmmm. Guess they're all busy with logistics. Last time I looked, rail went for $9.50/bbl. Not cheap. One car holds about 700 bbls. How many bbls per futures contract again? How many contracts were left hanging with expiration tomorrow? I don't know exactly, but it sure played havoc with the market. 2 Quote Share this post Link to post Share on other sites
Gerry Maddoux + 3,627 GM April 21, 2020 12 minutes ago, Ward Smith said: Last time I looked, rail went for $9.50/bbl. Not cheap. One car holds about 700 bbls. I'm tired of arguing, Ward, as I am clearly the last angry man, but getting 700 barrels free, paying $9.50 per for 700 barrels, that comes to a cost of $6650 per tanker of LTO. For the paltry sum of $1,330,000, a guy could fill 200 rail tankers. When oil hits $30 per barrel, that's $4,200,000 minus $1,330,000 for a profit of $2.87 M, just for some pretty simple logistics. Just saying, that's a pretty good expiry profit where I came from. 1 Quote Share this post Link to post Share on other sites
astros148 + 5 April 21, 2020 1 hour ago, Ward Smith said: Last time I looked, rail went for $9.50/bbl. Not cheap. One car holds about 700 bbls. How many bbls per futures contract again? How many contracts were left hanging with expiration tomorrow? I don't know exactly, but it sure played havoc with the market. I future contracts holds 1k barrels 1 Quote Share this post Link to post Share on other sites
Kongdanny 0 April 21, 2020 Can Anyone help me ? How to buy WTI Stock ? Because I’m Newbie Here . Thank You For Help 🙏🏻 Quote Share this post Link to post Share on other sites
0R0 + 6,251 April 21, 2020 Cleared it out. Lots of happy folks got paid richly to store oil. Many just flipped it from -$30s when it got to 0. Can't complain about that for a day's work at the trading terminal. I would also guess that all that are looking to take delivery are now short a later contract, particularly June. I am sure some commercial hedgers (typically producers going short) are sitting on plenty of cash. Some of the XOP hedgers probably made their year with today's insane session, too bad they would only have half a month's production shorted per contract date. I thought there was still space at cushing. Guess this tells us there isn't. Quote Share this post Link to post Share on other sites
0R0 + 6,251 April 21, 2020 1 hour ago, Kongdanny said: Can Anyone help me ? How to buy WTI Stock ? Because I’m Newbie Here . Thank You For Help 🙏🏻 There is no WTI stock. It is a future's contract. It is highly leveraged and as you see, it can go negative, 0 is not the lower bound. There is are ETFs for oil. Most use USO. But you need to consider that it loses money internally due to contrango as it rolls over from expiring contracts to the next month contract . It is best to hold when you are expecting a backwardation to develop due to a physical shortage coming up. Then it makes money so long as backwardation persists or prices rise. 1 Quote Share this post Link to post Share on other sites
ceo_energemsier + 1,818 cv April 21, 2020 11 hours ago, Piotr Berman said: Carrier ships for ore (iron ore, alumina etc.) could be easier to adapt. Ore itself can be easily stored in heaps. I can even offer my bathtub for a reasonable fee. Thinking about it, most homes have more than one bathtub... Many years ago, when the price of crude was falling like dead flies, I was having a bbq party and had many people attending ... I floated the idea that the entire community empty their pools and fill the pools with crude oil and I would pay them storage fees ......... Cheers 3 1 Quote Share this post Link to post Share on other sites
Hotone + 412 April 21, 2020 8 minutes ago, ceo_energemsier said: Many years ago, when the price of crude was falling like dead flies, I was having a bbq party and had many people attending ... I floated the idea that the entire community empty their pools and fill the pools with crude oil and I would pay them storage fees ......... Cheers Now is the time to do it! 1 Quote Share this post Link to post Share on other sites
Cletus + 7 sm April 21, 2020 Well it's deju vu all over again, the June contract has fallen 30% to $15. This is pretty crazy. 1 Quote Share this post Link to post Share on other sites
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