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Author Topic: Oil near zero  (Read 1101 times)

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Online Texan77

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Oil near zero
« on: April 20, 2020, 07:38:34 AM »
Near-term prices for West Texas Intermediate, the U.S. benchmark, are trading at huge discounts to later-dated contracts on concern the storage hub at Cushing, Oklahoma, will fill to capacity. That has seen prices disconnect from Brent futures in London. Buyers in Texas are offering as little as $2 a barrel for some oil streams, raising the possibility that American producers may soon have to pay customers to take crude off their hands.

http://www.msn.com/en-us/money/markets/oil-drops-to-21-year-low-with-storage-filling-as-demand-shrivels/ar-BB12Taj9

I read a article about a week ago that Putin was on the phone nearly everyday with Trump trying to head off a disaster in oil as world runs out of oil storage. Not only does he have to sell the oil for less he has to sell much less of it while the rest of his economy is in lock down. Now it is possible the worse is yet to come.

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Re: Oil near zero
« Reply #1 on: April 20, 2020, 07:50:17 AM »
It was laughable when OPEC +Russia announced a 10% reduction in crude oil output, about two weeks ago.

The reality is there is 30% overproduction presently.

In the what it is worth department a gallon of gas in the NorthEast sells for $1,85 per gallon. Curious what is the price in your neck of the woods presently?
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Re: Oil near zero
« Reply #2 on: April 20, 2020, 07:53:13 AM »
The rag heads will just be selling or trying to sell camel shit as fertilizer in a few more years no one will want oil anymore..
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Online Texan77

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Re: Oil near zero
« Reply #3 on: April 20, 2020, 07:54:35 AM »
It was laughable when OPEC +Russia announced a 10% reduction in crude oil output, about two weeks ago.

The reality is there is 30% overproduction presently.

In the what it is worth department a gallon of gas in the NorthEast sells for $1,85 per gallon. Curious what is the price in your neck of the woods presently?


Including taxes average $1.45 and the lowest place in town $1.18

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Re: Oil near zero
« Reply #4 on: April 20, 2020, 08:03:54 AM »
Curious what is the price in your neck of the woods presently?

Currently @ $2.20/gallon in NW PA.
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Re: Oil near zero
« Reply #5 on: April 20, 2020, 08:22:43 AM »
The rag heads will just be selling or trying to sell camel shit as fertilizer in a few more years no one will want oil anymore..

Think Steve of the upside, the inhabitants of Walmart will have a chance against the oil sheiks who now can only offer bags of camel shit to a Smokinhotova.  :-X
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Online Texan77

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Re: Oil near zero
« Reply #6 on: April 21, 2020, 02:08:22 PM »
Another big down day for oil. I bet not even Russia can make money in this market.

https://www.msn.com/en-us/money/markets/too-much-oil-how-a-barrel-came-to-be-worth-less-than-nothing/ar-BB12WpFo?ocid=msn360

Offline Manny

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Re: Oil near zero
« Reply #7 on: April 21, 2020, 03:22:44 PM »
It was laughable when OPEC +Russia announced a 10% reduction in crude oil output, about two weeks ago.

The reality is there is 30% overproduction presently.

In the what it is worth department a gallon of gas in the NorthEast sells for $1,85 per gallon. Curious what is the price in your neck of the woods presently?


Including taxes average $1.45 and the lowest place in town $1.18

If a US gallon at $1.18, that's 94p for 3.78 litres. I was over the moon today to find diesel at £1.09 a litre at Costco. That's $4.99 a US gallon.

Half a tank in a Range Rover at £37 ($45)? I was buzzing.  :chuckle:
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Re: Oil near zero
« Reply #8 on: April 21, 2020, 03:40:08 PM »
I was over the moon today to find diesel at £1.09 a litre at Costco.

 You paid that much at these oil prices??   :o

 You're probably going to hate hearing this but I just ordered 4000 litres of diesel today at .67 Cdn cents/ litre, .38 of your funny money. Although that is with a farm discount which is usually about 12 cents lower than pump price.

Online Texan77

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Re: Oil near zero
« Reply #9 on: April 21, 2020, 03:46:41 PM »
If you read the article many drillers are having to pay someone to take the oil away. There is no storage for it. For what I could see futures dipped to ten dollars per barrow and closed around 12 but that oil is already in storage. I am expecting a big announcement soon about some major productions cuts.  I did not check to see what gas was selling for today, but we have seen gas down to 99 cents for a short while. We may see that again if this keeps up. Remember there is 34 cents of road tax in the gasoline price here.

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Re: Oil near zero
« Reply #10 on: April 21, 2020, 03:51:21 PM »
Perhaps the Mystic one can call to the Kremlin and ask for a £100,000 and supertanker of crude oil?
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Online Texan77

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Re: Oil near zero
« Reply #11 on: April 21, 2020, 04:01:43 PM »
Likely no empty supper Tankers  to put the oil in. You might get the 100,000 pounds and the oil but you have to find the place to put it.

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Re: Oil near zero
« Reply #12 on: April 21, 2020, 04:20:42 PM »
Texan, Russian producers have some advantages over USAian ones.

Firstly, they can stop pumping!
Most USAian producers can't stop pumping. They need the cash flow to pay down their debts. Even if they make a loss they need the revenue.

Secondly, once a fracking well shuts down it is difficult to restart -can be done, but is very expensive so the profit goes away even if the price per barrel goes up to where it was a few months ago.

I am sure that Russian oil companies do not want to lose money and the government budget kinda likes having the tax revenues but they don't 'need' the money like the Saudis and the Americans do.

The discussions between Putin and Trump will not have been about the oil, except in so far as the oil leads to the bigger problem, the US dollar.

I'll leave it to the hive mind to figure out what that's all about and why Russia was OK with letting the oil price drop but absolutely did not want what happened yesterday happen - and it was, to repeat, not about the oil. :)
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Online Texan77

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Re: Oil near zero
« Reply #13 on: April 21, 2020, 04:54:56 PM »
Texan, Russian producers have some advantages over USAian ones.

Firstly, they can stop pumping!
Most USAian producers can't stop pumping. They need the cash flow to pay down their debts. Even if they make a loss they need the revenue.

Secondly, once a fracking well shuts down it is difficult to restart -can be done, but is very expensive so the profit goes away even if the price per barrel goes up to where it was a few months ago.

I am sure that Russian oil companies do not want to lose money and the government budget kinda likes having the tax revenues but they don't 'need' the money like the Saudis and the Americans do.

The discussions between Putin and Trump will not have been about the oil, except in so far as the oil leads to the bigger problem, the US dollar.

I'll leave it to the hive mind to figure out what that's all about and why Russia was OK with letting the oil price drop but absolutely did not want what happened yesterday happen - and it was, to repeat, not about the oil. :)

In the USA the producers go broke and the bank sells the assets to someone else with deeper pockets.  They are stopping pumping because if cause to pump. The oil had a negative value. Putin will have that problem too.  Drillers going broke make the value of the dollar go up because it is short position in dollars. Banks going broke makes the dollar go up. Debt private business have drives the dollar higher and debt the government has drives the dollar down. Without understand the long and short position in the dollar it is no wonder you do not have any idea why the dollar keeps going higher.

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Re: Oil near zero
« Reply #14 on: April 21, 2020, 10:36:17 PM »
One dollar currently equals 77 rubles. Is anyone buying? 

Sorry my last post got stuck in the middle of someone else's post

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Re: Oil near zero
« Reply #15 on: April 21, 2020, 10:42:37 PM »
I was over the moon today to find diesel at £1.09 a litre at Costco.

 You paid that much at these oil prices??   :o

It’s all tax here.
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Re: Oil near zero
« Reply #16 on: April 21, 2020, 10:47:52 PM »
One dollar currently equals 77 rubles. Is anyone buying? 

Sorry my last post got stuck in the middle of someone else's post

Did before, may do so again: https://ruadventures.com/forum/index.php/topic,28729.msg506177.html#msg506177
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Re: Oil near zero
« Reply #17 on: April 22, 2020, 01:43:48 AM »
I was over the moon today to find diesel at £1.09 a litre at Costco.

 You paid that much at these oil prices??   :o


Almost all of Western Europe does.

Germany = 1.15 / Litre diesel
Netherlands = 1.22 / litre diesel (Down from 1.49 just before covid hit).
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Online B.B.

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Re: Oil near zero
« Reply #18 on: April 22, 2020, 03:18:40 AM »
I was over the moon today to find diesel at £1.09 a litre at Costco.

 You paid that much at these oil prices??   :o

It’s all tax here.

Wow. :o You guys are getting raked.  I just tanked up on mid-grade for $1.45/gallon (originally $2.35/gallon, but I had a $0.90/g credit from Stop & Shop), which works out to, what?  31p/litre?  (50p/L before the discount).  And that's before the 5.25% cash back on gas from my BofA card.  So that drops it to 29.4p/L  (or 47.6p/L). otherwise).

B/B



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Re: Oil near zero
« Reply #19 on: April 22, 2020, 04:02:16 AM »

Wow. :o You guys are getting raked.  I just tanked up on mid-grade for $1.45/gallon (originally $2.35/gallon, but I had a $0.90/g credit from Stop & Shop), which works out to, what?  31p/litre?  (50p/L before the discount).  And that's before the 5.25% cash back on gas from my BofA card.  So that drops it to 29.4p/L  (or 47.6p/L). otherwise).

B/B

Are you talking about Petrol or Diesel here. In Netherlands, petrol is $0.20 more expensive per litre than Diesel.

Damn taxes.
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Re: Oil near zero
« Reply #20 on: April 22, 2020, 06:08:37 AM »


Are you talking about Petrol or Diesel here. In Netherlands, petrol is $0.20 more expensive per litre than Diesel.

Damn taxes.

It's t'other way around in the UK .. Diesel more expensive, normally more so in cold winters

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Re: Oil near zero
« Reply #21 on: April 22, 2020, 09:39:30 AM »

Wow. :o You guys are getting raked.  I just tanked up on mid-grade for $1.45/gallon (originally $2.35/gallon, but I had a $0.90/g credit from Stop & Shop), which works out to, what?  31p/litre?  (50p/L before the discount).  And that's before the 5.25% cash back on gas from my BofA card.  So that drops it to 29.4p/L  (or 47.6p/L). otherwise).

B/B

Are you talking about Petrol or Diesel here. In Netherlands, petrol is $0.20 more expensive per litre than Diesel.

Damn taxes.

 BB mentioned midgrade, so he is talking about petrol/gasoline

 It's opposite here, petrol is cheaper than diesel. Yet there is more tax on petrol. Years ago we were like you though, my guess is that it changed because they can't dilute diesel like they can petrol without losing the potency needed to run transport trucks, trains, etc.  Before you use to be able to store a motorcycle over winter and 5 months later fire it up and it would run on the old petrol . Not anymore, you have to drain the old stuff and put new in because it is stale already, the bike wouldn't even start. The km/litre went down on it too, it's a lot lower quality than it use to be.

 

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Re: Oil near zero
« Reply #22 on: April 22, 2020, 09:42:47 AM »
Curious what is the price in your neck of the woods presently?

Currently @ $2.20/gallon in NW PA.

$1,37 in Dallas.

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Re: Oil near zero
« Reply #23 on: April 22, 2020, 09:54:07 AM »

Wow. :o You guys are getting raked.  I just tanked up on mid-grade for $1.45/gallon (originally $2.35/gallon, but I had a $0.90/g credit from Stop & Shop), which works out to, what?  31p/litre?  (50p/L before the discount).  And that's before the 5.25% cash back on gas from my BofA card.  So that drops it to 29.4p/L  (or 47.6p/L). otherwise).

B/B

Are you talking about Petrol or Diesel here. In Netherlands, petrol is $0.20 more expensive per litre than Diesel.

Damn taxes.

 BB mentioned midgrade, so he is talking about petrol/gasoline

 It's opposite here, petrol is cheaper than diesel. Yet there is more tax on petrol. Years ago we were like you though, my guess is that it changed because they can't dilute diesel like they can petrol without losing the potency needed to run transport trucks, trains, etc.  Before you use to be able to store a motorcycle over winter and 5 months later fire it up and it would run on the old petrol . Not anymore, you have to drain the old stuff and put new in because it is stale already, the bike wouldn't even start. The km/litre went down on it too, it's a lot lower quality than it use to be.

Different countries have different regimes for taxing fuel. In the United States the taxing is up to the individual States.

In the Netherlands you pay a higher initial vehicle tax depending on the type of fuel you consume. Thus LPG is cheaper than either Diesel or Gas.

Bear in mind Diesel is far more refined than a generation ago. This is seen in the reality that a Diesel powered vehicle can win the 24 hours of LeMans.

Ethanol is mixed in with gas and this is what is fouling the injection (carboreters or electronic) systems. It is extremely damaging to marine engines. Big oil rules, and the rest pay.
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Re: Oil near zero
« Reply #24 on: April 22, 2020, 10:18:20 AM »
Curious what is the price in your neck of the woods presently?

Currently @ $2.20/gallon in NW PA.

$1,37 in Dallas.
$1.35/gal in Rockledge, Florida.
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