Topic: Collapse of crude oil prices - page 2. (Read 1608 times)

You realize that if this was true because of an oil glut they would have spilled raw oil and not already refined diesel fuel, right?

It makes no sense to pump all that oil to the refinery, refine it to diesel, send it to a storage deposit and then dump it in a river, if they wanted to dump oil they could have done so with a crude pipe in Siberia, not dump it in a river 40 km from the point to which this goes in the Enisei, for the entire world to see.

Due to the epidemic the prices of everything in general have come down. When the epidemic is back under control everything will be the same again Prices will go up and demand will go up. This problem has arisen not only in the case of oil but also in the case of economic disruption The mines are not working properly.

I don't believe their side of "what happened". I believe my theory/forecast of "oil spills" is actually now happening, because the cost of storage is too much to maintain. Quickest to solve the problem, dump the oil, invent a story.

https://edition.cnn.com/2020/06/03/europe/russia-putin-oil-spill-norilsk-intl/index.html

Oil really affected a lot of things this year as they say, but I am not sure whether that's true or not. The way I see it, everything is running on its own lane, and they don't really have anything to do with the other, unless there is an event that happens and affects everything. The stock market, not just the stock market, the cryptocurrency market as well, all declined in price.

The only thing I believe has caused the sudden decline in the world market earlier is the pandemic. That's the only thing strong enough to have such an effect. As for oil, I don't really see how it has anything to do with cryptocurrency or other stock markets.

For a long time, the oil price has had the problem of global growth not being as impressive as it should be.   They have the supply but not as much demand as should be possible with billions of people now starting to drive motor cars.    Russia mostly exports commodities and Iran oil is essential but both economies have the great negative of being inefficient in their production which then requires a higher oil price to justify.
   Now despite all the money printing and QE programs, there is no doubt the entire world at the same time is likely to see a contraction even while the monetary base expands.   So these countries are receiving less value and also lower prices and actual volume all at the same time, they are not at war with each other but the facts that assail them.

"Trade war between China and Russia" What?!
The cost of a barrel in Russia according to various sources is 25-45 dollars. For Iran, I will not say a figure, but no less than this level. But for Iran, oil is much more important, because it is under sanctions, and hydrocarbons are one of the main items of foreign exchange earnings in the country's budget.

Trade war between China and Russia doesn't affect the oil price, Russia and Iran would like to see oil price +$100 or even more, any drop under $50-60 is a pure loss for their economy. And yeah, covid-19 reduced the use of oil badly in the world due to confinement (planes, cars, buses...) in addition to the excess of production which is Saudi's faults then the result was chaotic!

I think the sharp drop in oil prices aside from Covid-19 was also due to the US-China trade war. The US Pettro dollar is falling because Russia has implemented oil price reduction policies along with Iran

I dont think the banks are caught up in oil business in the same way they were involved with mortgage debt in 2008 and most importantly using this debt as their tier 1 capital reserves, hence leaving them with nothing after taking losses.   The deal with commodity trading and business has been true for decades is wild swings and great risk but also profit to this sector, banks were never unaware of this like housing debt switched from most safe forming of saving to the most dangerous with sub prime meta etc.
   So we dont have that grand collapse, oil isn't the epicentre of this 'disaster' but a side story to the wider pullback required in economies so that people not business can be prioritised and kept alive.   It is unprecedented but possible this kind of failure is not quite the story of over 10 years ago, we can reverse the decline in economies as it was deliberate.

Also I have to keep saying but its completely obvious that cheap oil and energy is a benefit to us all in general.   We wont be poorer as a nation as people who must perform work and survive from 'suffering' this cheap oil, we should all be thankful and hope that it continues.   In the northern hemisphere that energy can be used for aircon cooling, but generally we wont need as much oil until winter comes back and also the full economic consumption of a working population.   Theres sunlight behind these clouds, I'm not so gloomy long term on these problems as such.   Plus dont forget Bitcoin does use quite a bit of energy in processing, now cheaper.

Bitcoin look not interested in this year because with halving moment can break out bitcoin to higher price maybe when have other chance bitcoin keep lower price, will be the end of bitcoin era as investment assets, have to move our investment to business or try with gold and property as our investment at the future.

Yes and also there is no one purchasing the oil as economies around the world are closed due to the covid-19 spread and now the oil that is being manufactured is to be sold so as to unload their supplies the countries are trying to sell it cheaper to get rid of it faster and there was a time when the oil futures market was at a negative rate if I am not wrong, this was quiet a bit and shocking news for me to see this kind of a thing.

Crude oil is directly related to export. We, know, international trade is near to close. Countries have locked their border. Who will purchase now? Supply is available but market has a lack of buyers. There has a theory in Economics. If supply is greater than the demand, price falls for cuting off the extra supply.  That's why price is falling. If the present situation becomes worse, this decreasing trends will be continue....

Oil prices have been depressed this year, thanks to oversupply pressure on prices began to intensify when the Corona virus countermeasures shut down factories, closing borders disrupting travel and sending consumers back into lockdowns, destroying crude demand.
But the biggest massacre was launched in March after Saudi Arabia declared war on oil prices in retaliation for Russia refusing to support riyadh for reducing production in order to offset the blow from the corona virus.

it will certainly happen, if you invest in OIL, now is the right time, because this pandemic will definitely end, maybe 1 year,
after this is end, all activities return to normal, and oil becomes a necessity that must be met

In trading, there are terms "price takers" and "price makers". Price makers are big players (or big boys) in an industry, while price takers are those who follow the price set by the price maker.

OPEC is not a price maker, crude oil-producing countries that are members of OPEC are not price makers, even Saudi Arabia, which has the largest oil production, is also not a price maker. The price maker is the "market". But the market here is not purely based on supply and demand but there are institutions that play and corporations that control.

For the price maker oil is the US because the US has a deterrent effect. Although physically in the Middle East, America still dominates so that it becomes a price maker. This is not separated from the United States military power in the Middle East.

Massive cuts in US production will have an effect. The specialists are optimistic that when we overcome the crisis and the economy begins to recover, prices will increase due to demand.

The downfall of the crude oil, will affected all this developing countries that base there economy on oil.

its now rainy season i believe so you should be fine   but still safety practice is a must because those stuffs are still highly flamable if expose with heat or simillar   .

  crued oil was expensive before , along time ago and people always protest its price to go down   .   im pretty sure that people also buy/invest now on it so that they can sell it or for later use    . it was like investing cryptos when they are on dump but this time we are talkin about oil   .

 

I think the Organization of Petroleum Exporting Countries, or OPEC is the main influencer of fluctuations in oil prices. OPEC is a consortium that, as of 2020, is made up of 13 countries: Algeria, Angola, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, the United Arab Emirates, and Venezuela. According to 2018 statistics, OPEC controls almost 80% of the world's supply of oil reserves. The consortium sets production levels to meet global demand and can influence the price of oil and gas by increasing or decreasing production.
OPEC vowed to keep the price of oil above $100 a barrel for the foreseeable future, but in mid-2014, the price of oil began to tumble. It fell from a peak of above $100 a barrel to below $50 a barrel.3 OPEC was the major cause of cheap oil, as it refused to cut oil production, leading to the tumble in prices.

Companies that are using oil or npt less operates. Vehicles like buses and jeepneys are no where to be found on the street. Less demand for oil I think. Due to this crude oil price is crashing, I tell my mom to take advantage of it. I tell her to buy extra crude oil for our vehicle. In that case, they save money. But of course having this, we must be extra careful with this because it is dangerous and is prone in fire. Philippines are now suffering high heat index so it also be a cause of fire.