Wow - WTI just hit 11 dollars!

[Douglas Buckland + 6,308]

$37.34 now...

[Kongdanny 0]

4 hours ago, 0R0 said:

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. 

Thank You Sir ! For Helping me ! 

So How Can I Pratice buying and selling Stock ? Which App or Website is Best ?

Thank You☺️

[Wombat + 1,028]

15 hours ago, HermitMunster said:

Just dump the COVID patients off of the cruiseliners and aircraft carriers and store the oil there.  Problem solved. Vote for me in November.

I still think it wld be better for the Fed to pay producers to flare (burn it in pits), just 2mb/d at $40/bbl?

[Wombat + 1,028]

4 minutes ago, Wombat said:

I still think it wld be better for the Fed to pay producers to flare (burn it in pits), just 2mb/d at $40/bbl?

That is 14mb/week (same amount that storage was filling) at $560m/week. Can solve problem for 10 weeks for just $5.6bn? Peanuts compared to the trillions that Fed pumping into every other sector but save many jobs?

[Wombat + 1,028]

1 minute ago, Wombat said:

That is 14mb/week (same amount that storage was filling) at $560m/week. Can solve problem for 10 weeks for just $5.6bn? Peanuts compared to the trillions that Fed pumping into every other sector but save many jobs?

If not able to pass Congress, maybe Texas govt can borrow the money to do it? U flare most of the gas, why not half the oil for a while?

[surrept33 + 609]

The USO ETF ran out of shares to sell, so the management team applied to the SEC for 4 billion more shares: https://www.forbes.com/sites/jimcollins/2020/04/21/demand-for-uso-has-created-the-colossal-mismatches-roiling-the-oil-markets/#561a2ef642cc

USO and it's leveraged alternative, UCO:

I think when oil prices recover somewhat, a lot of retail investors who were expecting big gains are going to be eaten by the negative roll yield in the meantime:

https://www.cnbc.com/2016/08/25/snake-oil-why-the-3-billion-dollar-uso-etf-is-down-this-year-even-as-crude-has-surged.html

[0R0 + 6,251]

4 hours ago, surrept33 said:

The USO ETF ran out of shares to sell, so the management team applied to the SEC for 4 billion more shares: https://www.forbes.com/sites/jimcollins/2020/04/21/demand-for-uso-has-created-the-colossal-mismatches-roiling-the-oil-markets/#561a2ef642cc

USO and it's leveraged alternative, UCO:

I think when oil prices recover somewhat, a lot of retail investors who were expecting big gains are going to be eaten by the negative roll yield in the meantime:

https://www.cnbc.com/2016/08/25/snake-oil-why-the-3-billion-dollar-uso-etf-is-down-this-year-even-as-crude-has-surged.html

Never seen such a rush to call a bottom. Wow.

They are already eating the roll. The contango is steepening as this had further pushed the market with the new assets already starting to roll over into the July contract, it is going to get ugly - uglier.

https://www.barchart.com/futures/quotes/CLY00/overview

The negative values are continuing in the cash market. Cushing is flooded. Obviously all space is taken or spoken for. Some refiner is going to make out like a bandit. 

Looking at RBOB to see if this is translating to anything. Perhaps the greatest crack spread ever recorded would show up as free gasoline?? 

 

[ceo_energemsier + 1,818]

39 minutes ago, 0R0 said:

Never seen such a rush to call a bottom. Wow.

They are already eating the roll. The contango is steepening as this had further pushed the market with the new assets already starting to roll over into the July contract, it is going to get ugly - uglier.

https://www.barchart.com/futures/quotes/CLY00/overview

The negative values are continuing in the cash market. Cushing is flooded. Obviously all space is taken or spoken for. Some refiner is going to make out like a bandit. 

Looking at RBOB to see if this is translating to anything. Perhaps the greatest crack spread ever recorded would show up as free gasoline?? 

 

 

 

Nut just a refiner or refiners, but trading companies who have the ability/capacity to move barrels out of Cushing to the USGC and have storage onshore and or floating storage or the ability to move those barrels far from these shores 🛳️

[0R0 + 6,251]

29 minutes ago, ceo_energemsier said:

 

 

Nut just a refiner or refiners, but trading companies who have the ability/capacity to move barrels out of Cushing to the USGC and have storage onshore and or floating storage or the ability to move those barrels far from these shores 🛳️

It is still astounding to me how many people are well positioned to make money out of this mayhem. Saudis are reputed to have 

1. shorted the markets after the Putin explosion,

2. already had secured storage and VLCCs

3. cleared their own storage within days of the OPEC blow up

4. saturated Russia's oil delivery points

5. are setting up to have oil positioned for sale when recovery hits. 

6. using cash from shorts to buy oil company stock among their JV partners. 

It is looking like a brilliant play on dire circumstances. 

[ceo_energemsier + 1,818]

19 minutes ago, 0R0 said:

It is still astounding to me how many people are well positioned to make money out of this mayhem. Saudis are reputed to have 

1. shorted the markets after the Putin explosion,

2. already had secured storage and VLCCs

3. cleared their own storage within days of the OPEC blow up

4. saturated Russia's oil delivery points

5. are setting up to have oil positioned for sale when recovery hits. 

6. using cash from shorts to buy oil company stock among their JV partners. 

It is looking like a brilliant play on dire circumstances. 

There is money to be made and market share to be taken up in either an up or down market. The Saudi's have the capacity to do and have done everything on your list. They have even taken up some Urals barrels to remove them from the market and "recycle" them.