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Topic: Collapse of crude oil prices - page 6. (Read 1608 times)

sr. member
Activity: 1624
Merit: 315
Leading Crypto Sports Betting & Casino Platform
April 21, 2020, 03:19:22 AM
#30
As an oppurtunist, I do not see the problem because of the crash, though this may sound really crazy but investing in oil will surely be a big win because this pandemic is just a temporary. I guess I could say that this is like a stock dump and this is an oppurtunity for us, remember that when something goes down then it will surely go up in no time, I believe that the reason that the price was down because of the demand is low and I am staking my faith in the time that oil will recover. I am no analyst or expert but I see this as an oppurtunity so take this with a grain of salt.
hero member
Activity: 714
Merit: 606
April 21, 2020, 03:14:31 AM
#29
This the right time to buy crude oil.
The price of crude oil is minus, you will get payed by buying crude oil. Cool
legendary
Activity: 3290
Merit: 16489
Thick-Skinned Gang Leader and Golden Feather 2021
April 21, 2020, 03:08:04 AM
#28
Another thought: if the shale oil producers spend around $50 per barrel of oil they produce, and the guy who buys it only wants it if someone gives him $20, can't the oil producer himself "buy" his own oil on the market, and leave it in the ground? He'll earn $20 instead of losing $50!
Or would that be considered some fraud in some way?
member
Activity: 980
Merit: 62
April 21, 2020, 02:37:25 AM
#27
Sooner or later this time was about to come. And I wonder why you re surprised.
People have started to try to get rid of oil production. We are promoting green energy, hybrid cars and electric cars.
It was about time to see the oil price dropping like that.
legendary
Activity: 2576
Merit: 1860
April 20, 2020, 10:24:06 PM
#26
What the hell is going on, I thought it is just a some sort of bug but when I read the news I found out that it is true. This kind of event will be written in the books for sure because it is not normal to see that the demand of oil will become negative, it is really first time in history. The panic is real and I know that there are some institutions and companies that experiencing now a bankruptcy because of what happened. Anyway, there is a opportunity and we should be ready especially if we will go to long position.

It is indeed not normal to see the demand of oil plunge too low but then the times are exactly that, not normal. With COVID-19, we have suddenly seen streets cleared of cars, private and public. In addition, ships are docked, planes are not flying. All these are using oil for their operation. And now that they are all stuck due to lockdowns, the oil are left unsold. I guess it will be a matter of months before the demand would soar again. 
sr. member
Activity: 1036
Merit: 281
April 20, 2020, 09:24:03 PM
#25
What the hell is going on, I thought it is just a some sort of bug but when I read the news I found out that it is true. This kind of event will be written in the books for sure because it is not normal to see that the demand of oil will become negative, it is really first time in history. The panic is real and I know that there are some institutions and companies that experiencing now a bankruptcy because of what happened. Anyway, there is a opportunity and we should be ready especially if we will go to long position.
legendary
Activity: 2254
Merit: 2253
From Zero to 2 times Self-Made Legendary
April 20, 2020, 09:07:42 PM
#24
....
The world ought to have adopted electric vehicles and alternative energy sources a long time ago, and seeing as how it didn't, it's allowed so much greed and corruption to thrive over the years that the end can't come soon enough IMO.  Plus you won't hear many folks complaining about how low gas prices have been--and I hope they drop even further.


Unfortunately, many countries fail to read this movement, so that large countries exploiting renewable energy in a country under the guise of TORCH. China has started a program to monopolize the production of world batteries for electric cars, homes, drones, and buildings. Even locking in the OBOR program for countries that have high nickel resources.

The industrial revolution 4.0 also means the energy revolution. Given the availability of oil and coal reserves will soon run out. So it is necessary to diversify the energy to continue to meet the world's energy needs in the next fifty, one hundred, to hundreds of years in the future.

The industrial revolution 4.0 requires a reliable supply of energy for its production. The challenge is how to develop electrification, new renewable energy, and energy conservation with zero emissions. So that despite the economy and rapid movement we can still live. Electrification, diversification, and energy conservation are a must. Electricity no longer generates CO2, then diversification is carried out with the use of renewable energy and last but not least is conservation through the use of more efficient energy. So the government must have a detailed road map of the stages of the energy revolution, then a strong political commitment to realize.
legendary
Activity: 3290
Merit: 16489
Thick-Skinned Gang Leader and Golden Feather 2021
April 20, 2020, 04:43:49 PM
#23
it will cost probably an insane amount to store it anywhere if there is still room for any.
I can see a business model where you fill abandoned oil wells with fresh oil again, and make a profit doing so Smiley
full member
Activity: 291
Merit: 119
April 20, 2020, 04:37:34 PM
#22
Crude oil is sold in barrels the price of 1 barrel was somewhere around 51-52 dollars in January now its as low as 20 dollars it can be very very good time to invest in crude oil i strongly belive that it'll bounce back in the last quarter if this year and many meetings also held in this month regarding crude oil between russia and Saudi Arabia they had a deal on production cuts just let this pendemic go away you'll see it will go up again.
legendary
Activity: 2912
Merit: 6403
Blackjack.fun
April 20, 2020, 04:28:42 PM
#21
And I still don't really get it! So this doesn't mean oil producing companies are asking a negative price, this means the guys who bought the oil a while ago now regret it and don't want what they bought and paid for to actually get delivered, is that correct?

Yeah, because they assume nobody is that keen to buy that oil, refineries don't want it and it will cost probably an insane amount to store it anywhere if there is still room for any. So, it's a pain in the ass to have it, like gifting somebody with a mansion that is crumbling, needs a lot of money and comes with a lot of yearly taxes.

And we're still paying over 1euro/l, good old taxes  Cry
I paid around 1.50 euro/l last week. Where can I sign up for a euro/l?

I said over, not exactly. But I'm paying 1.15!  Grin
And you Dutch are crazy with your prices, just dump all your cars in the sea, make another seawall out if them, ride bicycles and be done with it.

~
Ahh, a fiery dam of oil.. What could go wrong if any country decides to try this? Grin

Do you know what's interesting?
That surprisingly, it will not be that dangerous as you might assume, crude oil if properly stored and left with no way of accumulating gas under pressure, is not that flammable, assuming you manage to keep all the water from it to prevent overflow and you constantly monitor every gas accumulation it won't burst into flames. And even if it will catch fire, there will be no gigaton explosion.

legendary
Activity: 3290
Merit: 16489
Thick-Skinned Gang Leader and Golden Feather 2021
April 20, 2020, 03:47:59 PM
#20
Marketwatch.com explains what this means:
Quote
The unprecedented drop in the nearby contract reflects traders scrambling to exit long positions that would require them to take physical delivery of crude amid dwindling storage space. It also reflects a convergence with the physical spot price for oil.
And I still don't really get it! So this doesn't mean oil producing companies are asking a negative price, this means the guys who bought the oil a while ago now regret it and don't want what they bought and paid for to actually get delivered, is that correct?
legendary
Activity: 3542
Merit: 1352
Cashback 15%
April 20, 2020, 02:55:02 PM
#19
Uhh, what?


source

I woke up this morning, checked Yahoo and it was $10, now it's under $1 a barrel. And it's taking a toll on the stock market.

edit¨* @LoyceV beat me to it...but my pic isn't accurate, it's actually -137% wtf!??

It's insane. They literally have to stop production instantly else their storage would be filled with oil that no one wants to buy at the moment. China could take up all the oil they could get while the prices are low, but even then I think that they would have a limiting capacity for oil storage. Just a month ago, Saudi announced that they will be ramping up their oil production by 3 million barrels/day. That seemed to be not a good idea after all.

LE:
Out of curiosity, I checked and it seems the dam has a storage capacity of around 3500 days of global oil production.  Grin


Ahh, a fiery dam of oil.. What could go wrong if any country decides to try this? Grin
legendary
Activity: 3290
Merit: 16489
Thick-Skinned Gang Leader and Golden Feather 2021
April 20, 2020, 02:47:45 PM
#18
hero member
Activity: 2086
Merit: 994
Cats on Mars
April 20, 2020, 02:28:49 PM
#17
Uhh, what?


source

I woke up this morning, checked Yahoo and it was $10, now it's under $1 a barrel. And it's taking a toll on the stock market.

edit¨* @LoyceV beat me to it...but my pic isn't accurate, it's actually -137% wtf!??
legendary
Activity: 3290
Merit: 16489
Thick-Skinned Gang Leader and Golden Feather 2021
April 20, 2020, 02:27:23 PM
#16
And there it is:
Quote
At one point, oil fell to $-1.43 a barrel.
Note the "minus" sign!
hero member
Activity: 1806
Merit: 671
April 20, 2020, 02:13:16 PM
#15
It seems like stopping production isn't always their solution for oversupply of their oil, when there is no demand for it their business is practically over. If you think about it most of the businesses that uses oil like air transportation, cargo shipping, delivery trucks have all hit a pause in their businesses as well which means their business will also take a hit whether or not they like it. This isn't avoidable at all and they can't do anything about it. Best thing now for this corporations is to ride this year out in the losing side and hope everything will go back to normal as soon as this pandemic subsides.
legendary
Activity: 3290
Merit: 16489
Thick-Skinned Gang Leader and Golden Feather 2021
April 20, 2020, 02:03:57 PM
#14
Now, this went south pretty fast!
Wow! ft.com:
Quote
Benchmark US oil prices crashed towards $1 a barrel on Monday, as the collapse in demand caused by the coronavirus pandemic leaves the world awash with so much crude, and so little available storage capacity, that producers may soon be paying for buyers to take it off their hands.

West Texas Intermediate, the US marker, lost 92 per cent on Monday, with the price of oil for delivery next month sinking to a low of $1.02 a barrel, on warnings that traders were struggling to access storage capacity at the refinery hub of Cushing, Oklahoma, which is expected to be maxed out within weeks.
Madness Shocked

Quote
And we're still paying over 1euro/l, good old taxes  Cry
I paid around 1.50 euro/l last week. Where can I sign up for a euro/l?

Quote
Out of curiosity, I checked and it seems the dam has a storage capacity of around 3500 days of global oil production.  Grin
Let's not give them any ideas Cheesy

So prices drop to almost zero (and possibly lower) because even though you can buy the oil, you can't store it. So I guess shutting down and starting up oil production costs more than just continuing production at a loss for a while.
legendary
Activity: 2912
Merit: 6403
Blackjack.fun
April 20, 2020, 01:39:24 PM
#13
  • Some say oil prices could go as low as $0 or even negative price per barrel

Now, this went south pretty fast!

China wants to increase it's strategic oil reserve while prices are low
Unless they are planning to fill the 3 Gorges Dam with oil, they will run out of space pretty soon too.

LE:
Out of curiosity, I checked and it seems the dam has a storage capacity of around 3500 days of global oil production.  Grin
legendary
Activity: 3290
Merit: 16489
Thick-Skinned Gang Leader and Golden Feather 2021
April 20, 2020, 12:58:00 PM
#12
I've been following the oil market a bit during the pandemic, and (without any references) this is what I remember (by heart):
  • Oil production was increased by 2 million barrels per day by the Saudis
  • Oil demand has dropped by almost 30 million barrels per day
  • Next month, OPEC and other countries are going to cut production by almost 10 million barrels per day
  • (Strategic) oil storage facilities are quite full, other storages are being filled too
  • China wants to increase it's strategic oil reserve while prices are low
  • Storages at oil producing countries are being filled too
  • Floating storage (oil tankers) are in high demand
  • Some say oil prices could go as low as $0 or even negative price per barrel
At some point, oil producing countries will literally have no place to store their oil anymore. I don't know the details of those operations, but in my layman's view, that will mean they have to stop production in order to keep their feet clean from oil.

US tariffs on imported oil would be interesting. It protects their own shale oil industry, while the money stays within their own country instead of being paid for oil abroad. Americans won't like the higher oil prices of course, but keeping the money in their own economy could benefit the US in the long term.
sr. member
Activity: 1638
Merit: 278
April 20, 2020, 12:39:50 PM
#11
The good part is, people are still afraid that "if this bad thing happens to banks, the economy will crash, so we have to save banks in order to save the economy!". Well, I am sorry but banks do need money constantly and they constantly crash the economy and so does all the other companies who have leveraged debts on oil as well.

Maybe instead of letting these huge billion dollar companies ruin the economy and constantly get saved, we could potentially just use 5x that amount that will hurt our finances more than we can imagine for now, yet we could at least never have to worry about anything like this in the future, when you consider world will be back on track to do great in 10 years after such a move, you realize in 100 years we would basically be living in the greatest prosperity the world has ever seen because our money that we work so hard for and still live poorly with it won't go to saving bigger companies anymore.
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