Topic: Collapse of crude oil prices - page 3. (Read 1608 times)

I am pretty sure with this growth of oil. When the whole world socially isolated in early March and April, the demand for gasoline has dropped sharply and so the price of oil also fell. Now it seems that in Asia the disease has been well controlled, so the demand for production and gasoline has also increased. I think it will hold around $ 23 - $ 27 for a long time before there is another big upside move.

It is really scary that it is already back at 25 dollars right now, I mean of course it was a fluke that it dropped so much, it was like 2 cents per liter of oil, that is really not something that could have been sustainable, it was peaked at 60 dollars this year so we all know it would have gone up however 25 bucks and this quickly really scared me.

I am not entirely sure if this increase is really because it should have gone up but more like there was too many talks of how oil is cheap so too many people bought. I am afraid people may see the increase and decide they did a right call and when it doesn't keep going up they will sell, because this is actually a lot of traders buying to make a profit, when there is no profit they will leave and price may down again.

i think the most cause of the price are the pandemic , the pandemic lead company to "stop" producing and that the cause they dont buy oil , and it happens to the most of company

I hope that problem will be solved when pandemic is ended and all manufactures start to work again

Here is my country the oil price is still the same due to taxation.
I think that the same has happened in many other countries so we as consumers cannot see any significant drop in the oil price. Sales are not increased due to the oil price leading to a collapse in the whole market.

The absolute collapse of WTI prices is primarily owing to the expiry of May WTI contracts, alongside the significant demand destruction due to lockdowns in several countries and supply glut in oil markets. Put simply in other words, the sellers are paying the buyers. Oil traders are unwilling to take the delivery owing to lack of storage space.

Will it go back tho?
People's habits have been changed during lockdown, companies have been damaged, some of them closed, other ones adapted to situation and started to work remotely.
But overall I believe this situation will push humanity to go away from oil

I heard a figure that now about 25 million barrels per day are unclaimed in the world, which is about 25% of the total production, and given the fact that there are much more vouchers on the exchange than there are directly oil, this was expected, the only big surprise , this is a price drop in the negative, and even so low.

It is a Pandemic that we are going through and therefore due to Quarantine people are actually staying at home and the demand for crude oil is plummeting.
One cannot just go around and sell them when no one wants , the market would have to close down till the time people starts going out. Also one should understand that it is really hard for the government to shut down everything and they are loosing huge money and so are the people and therefore soon enough I do believe they will either go for heard immunity or at least decrease the quarantine measures .
Then one can expect the graph to go up. There is literally nothing that can be done, if people are gonna stay at home someway or the other the market will go down and it is for the safety of others .

It is quite predictable due to Global lockdowns caused by this pandemic. The demand is low but after this crisis I believe that it would go back to its normal phase. Slowly but surely.

And for this short period of time we have most of the people being online at the same moment, so we can communicate and cooperate more efficiently.
I assume there still are methods of distraction, so we could not being as unite as we could be

It is quite predictable due to Global lockdowns caused by this pandemic. The demand is low but after this crisis I believe that it would go back to its normal phase. Slowly but surely.

the influence of "stay home" because pedemics affect the use of gasoline is not yet with "Lockdown" then flights are also closed between countries. so that all usage related to petroleum is affected. I agree with the colleague above, maybe after completion of the pedemic, it will gradually improve but it also takes time because there are quite a lot of reserves. because oil drilling cannot stop because the costs will be greater than having to sell oil reserves at cheap prices.

2021 - 2026 won't be good years to practice Pescatarianism. Hahaha.

https://twitter.com/subnut/status/1255081820938539008

Those oil tankers would have no other choice, but to dump the oil in the ocean to save costs/expenses. It is going to be crazy.

Demand is one reason without any doubt but that short term price action was because of the speculators usually the price will be very volatile during the contract expiry along with that the fear of delivery made huge dump in the price. Even though the price of oil is decade low since the price of retail gasoline was just 4% down from the high because of taxes in some countries

Seeing the decline in oil prices from a geo-strategic geopolitical perspective nearing November 2020. America is the protector and partner of Saudi Arabia who gave approval for the decline in oil prices. Market oil cadres are Saudi Arabia, America, Venezuela, and Russia, others are small players. Saudi Arabia wants to be a controller of oil with America. MBS pushed prices below the production prices of all countries. 11 dollars where the Saudis are still profitable and who buys all of its oil is America.

The Saudi strategy of lowering prices is making all oil companies bankrupt. All who held oil bonds screamed. And in the end, the oligarchy that holds the dollar will buy oil bonds and collapsed oil companies and other securities-related to oil and oil products. Therefore, the FED flushed QE (read printing money) to incumbent oil players and supporters of the republican party to buy world oil companies that collapsed and the United States collected oil stocks for the next 1-2 years. Energy as a key to war began to be turned off.

Currently, many countries are aggressively making demands on China in collaboration with WHO officials, ranging from Germany, Israel, America, Britain. There is a possibility that China's dollar securities will be detained by all countries including America. China has no dollar and a lack of energy. China does not have energy as its national reserve, all are imports.

Field facts at this time, there are two fronts of the Chinese American war. Arabia versus Russia, The Colder War Version 3.0. The purpose of energy control is for war purposes and it is estimated that the war zone in the South China Sea and the Korean Peninsula, with the Korea Unification campaign with South Korean winners (assisted by the Americans). Trump just needs a big trigger to trigger a war like an issue that just circulated that the North Korean president is seriously ill.

Trump needs something to win, corona drugs (hydroxychloroquine and remdesivir) which are predicted as game changers are actually failing. Trump tried to blacken China but China fought back. Trump then blamed WHO. Then begin disinfecting liquid discharge, blazing sun, ultraviolet light, and bleaching fluid. But nothing can lift Trump's prestige. As megalomania, Trump will go all out and release the capabilities and back up shadows of the people behind the republican party.

you need to realize that even if we do have the power to control the price by not buying it as a final consumer, our vehicle still rely heavily on the use of oil as a fuel and if you want a real independece from oil you should start using those electric vehicle.

This situation happen because many countries try make production and have much stock so oil price down, with world get crisis almost business stop working and oil have been in lower price, but many countries not make their oil on lower price and keep the same price before oil in lower price,

Crude oil prices are currently at the lowest level in the last 20 years (not the first time)..  This phenomenon occurs due to lack of market demand for crude oil needs because of this "PANDEMIC".  at the moment there are around 40+ countries that impose "LOCKDOWN" (which means there is no activity at all) and the rest only impose "LIMITATION OF DISTANCE".. 

The United States, Russia and Arabia (the 3 biggest oil-producing countries in the world) surely feel the worst impact of this price reduction.  they can't do anything even when China buys a lot of crude oil as their stock. it is certain that the price of crude oil will rise again but it cannot be predicted when and to what extent (price)..

of course it will go up later, I see some countries are not in accordance with the decline in oil prices. although oil prices have fallen, fuel prices for vehicles have not gone down in some countries. whereas the decline in fuel prices when in a pandemic / covid-19 condition really helps the community increase purchasing power. is this not very consistent with concern about political fraud