WTI Oil now at -$9 per barrel.....what does that even mean!!!???

blo...@columbus.rr.com

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Apr 20, 2020, 2:36:17 PM4/20/20

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Seriously?

John S

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Apr 20, 2020, 3:10:01 PM4/20/20

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On 4/20/2020 1:36 PM, blo...@columbus.rr.com wrote:
> Seriously?
>

Lower prices at the pumps?

Rob

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Apr 20, 2020, 3:20:26 PM4/20/20

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I don't know how that works in the USA, but over here whenever the prices
of crude oil rise we see higher prices at the pumps very soon, but when
the prices fall nothing happens "because we still have to sell the stock
bought at the higher price" or similar...

bitrex

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Apr 20, 2020, 3:55:11 PM4/20/20

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Gas was $1.93 at the local station near the Rhode Island border this
morning buy I haven't traded my EV for a Hummer, yet. also, it runs on
gas too.

Bill Martin

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Apr 20, 2020, 3:58:08 PM4/20/20

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Same story here, but if it stays there too long there won't be any
replacement oil when the old stock is gone... :-(

Tom Gardner

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Apr 20, 2020, 3:58:43 PM4/20/20

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On 20/04/20 19:36, blo...@columbus.rr.com wrote:
> Seriously?

There is so little demand they are chartering tankers as floating storage tanks.

"Supertankers drafted in to store glut of crude oil
Ships able to carry 2m barrels chartered for $335,000 a day to store oil
unwanted during the Covid-19 pandemic"
https://www.theguardian.com/business/2020/apr/19/supertankers-drafted-in-to-store-glut-of-crude-oil-coronavirus

or

"The last major period of global oil oversupply was 2014-16, during which global
inventories built up by about 1.1 billion bbls, or an average of one million
barrels per day (MMb/d). IHS Markit expects the current period of oversupply to
build a larger volume of oil in a matter of months. In 2014-16, it is estimated
that a maximum of 120 million barrels (MMbbl) of oil was put into floating
storage - which means oil stored on ships with no booked delivery destination.
This time, floating storage will fill more rapidly to relieve the pressure
cooker of bulging onshore oil inventories."
https://ihsmarkit.com/research-analysis/floating-storage-how-much-oil-surplus-can-be-tanker-stored.html

Ricky C

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Apr 20, 2020, 6:21:10 PM4/20/20

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It is supply and demand everywhere. When oil prices go down, it only impacts the pump price as the supply of gasoline goes up. A lower oil price does not have to result in more production of gasoline. The gas companies have to decide to ramp up production. They don't have to do that right away. Eventually one of them gets a bit greedier than the others and starts making more gas which starts the price lowering.

I see gas going for $1.25 around here. I think the oil price drops are reaching the pumps.

The price of oil being negative in some market, somewhere means oil producers have not cut back yet and are paying to store some portion of their production. But rest assured, the oil companies buying the oil production are still paying for it.

--

Rick C.

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- Tesla referral code - https://ts.la/richard11209

Ricky C

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Apr 20, 2020, 6:26:30 PM4/20/20

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If Trump had any balls, he would use the DPA to order GM to build oil tankers to store the excess oil!

Or we could buy some to go with the millions of barrels we have shoved into the ground in the strategic oil reserve. But that's probably already full. :(

It's like shrimp prices going below $5 a pound for 16 count and your freezer is already full.

--

Rick C.

+ Get 1,000 miles of free Supercharging
+ Tesla referral code - https://ts.la/richard11209

Lasse Langwadt Christensen

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Apr 20, 2020, 6:41:40 PM4/20/20

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yeh, it is oil futures that are negative, those who bet on oil prices rising are desperate to get rid of them because otherwise they will have to take delivery, that's going to be messy if you sit in an office

DecadentLinux...@decadence.org

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Apr 20, 2020, 7:30:44 PM4/20/20

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blo...@columbus.rr.com wrote in news:00926a81-e8c7-4345-a4fa-
dc6e52...@googlegroups.com:

> Seriously?

-36 It means they will pay you to come take it off their hands, but
you must actually take delivery.

jla...@highlandsniptechnology.com

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Apr 20, 2020, 11:14:31 PM4/20/20

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On Mon, 20 Apr 2020 11:36:09 -0700 (PDT), blo...@columbus.rr.com
wrote:

>Seriously?

Apparently people made binding contracts, futures or something, to buy
and sell oil, and have to trade now, even if it means paying people
instead of getting paid to deliver oil. That same thing happens in
electricity markets. Sometimes California pays other states to take
excess solar electricity off our hands.

--

John Larkin Highland Technology, Inc

Science teaches us to doubt.

Claude Bernard

Clive Arthur

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Apr 21, 2020, 4:10:32 AM4/21/20

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You have to be careful if it goes negative - if you forget and pay them,
they'd have to suck it out of your car.

--
Cheers
Clive

Rob

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Apr 21, 2020, 5:28:40 AM4/21/20

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So you do not yet get free gas and a free hamburger?

John Larkin

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Apr 21, 2020, 2:17:00 PM4/21/20

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On Mon, 20 Apr 2020 20:14:24 -0700, jla...@highlandsniptechnology.com
wrote:

>On Mon, 20 Apr 2020 11:36:09 -0700 (PDT), blo...@columbus.rr.com
>wrote:
>
>>Seriously?
>
>Apparently people made binding contracts, futures or something, to buy
>and sell oil, and have to trade now, even if it means paying people
>instead of getting paid to deliver oil. That same thing happens in
>electricity markets. Sometimes California pays other states to take
>excess solar electricity off our hands.

One great proposal is to store crude oil in empty WeWork spaces.

--

John Larkin Highland Technology, Inc

picosecond timing precision measurement

jlarkin att highlandtechnology dott com
http://www.highlandtechnology.com

Clive Arthur

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Apr 21, 2020, 2:24:44 PM4/21/20

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On 21/04/2020 19:16, John Larkin wrote:
> On Mon, 20 Apr 2020 20:14:24 -0700, jla...@highlandsniptechnology.com
> wrote:
>
>> On Mon, 20 Apr 2020 11:36:09 -0700 (PDT), blo...@columbus.rr.com
>> wrote:
>>
>>> Seriously?
>>
>> Apparently people made binding contracts, futures or something, to buy
>> and sell oil, and have to trade now, even if it means paying people
>> instead of getting paid to deliver oil. That same thing happens in
>> electricity markets. Sometimes California pays other states to take
>> excess solar electricity off our hands.
>
> One great proposal is to store crude oil in empty WeWork spaces.
>

Well it's already in barrels and there are plenty of closed pubs over
here...

--
Cheers
Clive

edward....@gmail.com

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Apr 21, 2020, 7:08:47 PM4/21/20

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Not necessary. It's a contract to take oil away from Cushing (or similar place). Barrels and/or tankers not included. Right now, barrels cost more than crude oil, so negative price for oil.

Phil Hobbs

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Apr 21, 2020, 9:48:08 PM4/21/20

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On 2020-04-20 23:14, jla...@highlandsniptechnology.com wrote:
> On Mon, 20 Apr 2020 11:36:09 -0700 (PDT), blo...@columbus.rr.com
> wrote:
>
>> Seriously?
>
> Apparently people made binding contracts, futures or something, to buy
> and sell oil, and have to trade now, even if it means paying people
> instead of getting paid to deliver oil. That same thing happens in
> electricity markets. Sometimes California pays other states to take
> excess solar electricity off our hands.

Speculating in commodity futures is like that. If you're not for real,
you have to liquidate your position or take delivery.

I recall a sitcom episode from the '60s where somebody had several tons
of pork bellies delivered to his front lawn ;)

Cheers

Phil Hobbs

--
Dr Philip C D Hobbs
Principal Consultant
ElectroOptical Innovations LLC / Hobbs ElectroOptics
Optics, Electro-optics, Photonics, Analog Electronics
Briarcliff Manor NY 10510

http://electrooptical.net
http://hobbs-eo.com