Topic: The drying oil - page 2. (Read 899 times)

for sure. the USA is the biggest oil producer in the world, and they also have some of the most expensive per barrel costs---and prices are now back to 1990s levels.


there is increasing talk about a cold war with china: https://www.latimes.com/politics/story/2020-04-07/coronavirus-pandemic-us-china-new-cold-war

i'm not reading too much into it yet.

Believe me the US are not happy with all this stockpile, and for sure not about the price being so low.
And a war against who exactly? not THEY are the big boys in the oil industry.

Is the United States readying themselves for war while it's cheap? I believe after the times the U.S. stockpiled Crude Oil, a big war broke out.

Many are late in understanding this phenomenon. When some people explain the geoeconomic approach with their muscle knowledge it is always considered to be only a conspiracy theory. America began to withdraw its troops at several points in the Middle East to be a sign that oil is no longer something that is important to the superpower countries in the world. Especially after the United States became the king of oil with his shale oil.

In addition to realizing that oil will dry up, China's energy dependency will cause havoc. China is a country that has a state platform toward energy self-sufficiency. As we know today that China has a dependency on energy imports. Therefore China has programs that support the platform such as the global electric car market mastery program in 2035 (automotive industry road map). The monopoly and dominance of the battery industry is not only for cars but also for houses, buildings, and drones. Then the construction of smelter infrastructure in many countries for the monopoly of raw material batteries such as Ni and Li.

Most of the governments were already stocked the crude oil needed for the next three months so I doubt that anyone will buy now the even US tried to store the produced oil in the containerships still the expenses are getting out of hand than the actual price that is the reason why the price of oil went down so when the condition back into normal we will see spike in the oil prices.

IF you have stock, you are actually going to be paid to stock the fuel!

anyway. USO is still on play today.

USO Oil Fund Crashes Again as Crude Prices Tumble



It's like an enormous, dramatic circular reference.

This situation with the current low price, is going to cause a long term economic problem in the fuel market.
Many people now are buying petrol in order to get advantage of the low price and have stock for the winter. This means that winter sales ar going to be lower than expected.

with the current condition, new, cheaper fuel will certainly be sought after if the oil has gone up again,
and in 2030 it is likely that many non-oil-powered cars must also have a lot like electric power or the sun and maybe there are more

Electric cars were already on the road by the year 2030 it is rare to find a car powered by fuel but now we relied on oils so the price will hit up when the lockdown back into normal.Countries who adopt to solar and other renewable energies sooner will get more advantage of making the expenses more cheaper and can provide the source to their people more cheaper as well.

I honestly hope this could lead countries to use more of renewable energy instead if such unreliable resource like oil.
In couple decades when oil will be gone - those countries who were smart enough will have enough energy (like Australia for instance)

Interesting piece from the FT:

Oil world zeroes in on Cushing, Oklahoma




So don't expect prices to rebound too soon.

Happy, BUT nowhere to go, because of COVID-19 pandemic. Haha.


I've been riding my bicycle more too. I love it, more exercise for me. Plus, doing it only during a pandemic? Ironic.

Oil price is in shambol right now and this is due to the effect of covid19, why so because the demand for oil consumption has dropped greatly so with this we can say oil is also as volatile as cryptocurrency. Am happy this is happening so the world can know the true nature of cypto.

Honestly it doesn't matter what the reason behind it is, but maybe this period where we are all at home could help out the renewable energy which is literally the biggest enemy of the oil so far in the world. As long as we have sun and we have wind which we can't have zero amount, we will continue to survive with that.

Oil is not something you can find everywhere, eventually it dries up and there is no more to take out, sure we find more and more of it every day but that doesn't change the fact that it is a limited amount, whereas sun is rampant and everywhere, sun is lighting on the world every single minute, if it is not to you right now that means it is to somewhere else around the world but it is always hitting the world just right and that means renewable energy could be endless source of energy for us and which is where the smart money is going, that is why oil is getting hurt more and more each time, eventually we will not use it at all.

Oil price hit down due to the extended lockdown, we still don't know when the pandemic will be resolved so countries are hesitating to stock the crude oil because more longer they store then the more expensive they will face and also some countries are in need of funds for a medical emergency which left the oil untouched so prices went down too much.

For each type of security, there are risks. oil has never had to be negative because the warehouses are full and owners are wrong when they continue their strong production strategy. This is a problem of supply and demand, which is very normal. As for the crypto market, many people still say this is a scam market and I agree with them. when billions of dollars are traded each day with no conditions to guarantee the risk to investors, that's a very bad thing.

You have the answer already in your comment. The pandemic lockdown has restricted movement and there is less cars on the road. Cars use oil. This is what has affected the oil price, and not the pandemic itself. If there is free movement even with the pandemic, the demand for oil will increase and price will rise up again.

Like other commodities, the price of crude oil in the world market is based on supply and demand. The pandemic halted most economic activity and citizens' activities, the demand for oil dropped dramatically, and thus the price on the stock market. Oil purchase contracts in the world market are various. Some transactions are carried out for the future, called futures, or futures. This is a type of contract that allows the buyer and seller to set a specific date in the future when the oil purchased must be sent by the seller to the buyer, at a price determined at the time the transaction was made. The holder of this transaction letter can also trade these contracts on the stock market.

Futures on the crude oil market for May are due on April 21, which means, after that date these transactions cannot be traded anymore. This also means the seller must send oil to the buyer. The problem is that oil storage areas are now full because oil demand is very minimal. The less available storage space, the more expensive the storage costs, this is what makes many futures owners who try to sell the contract in the last days before maturity, because they want to get out of the contract and prevent the shipment of oil physically. That's what happened with this type of WTI crude oil earlier this week. The stock market is flooded with futures offers for May because they will soon be due. As a result, oil prices continue to plummet and enter the minus territory. The sellers scramble to offer incentives to those who want to buy the contract.

meh, my car just sits in the driveway. do you have any idea how many trips to the grocery store i can make with one tank of gas? it's in the 100s.


it hasn't even gone into effect yet, and won't for another week. SBA bailout loans are also breathing life into USA drillers, so next month's contract could see some craziness too, given the existing glut of stored oil. i wonder what's gonna happen.

I am pretty much sure you are aware of the Russia and Saudi Arabia oil war that has been going on for long, which ultimately ended up causing both of them to pump up significantly more oil than usual which caused a rise to global oil supply. This event was the main cause for the drop of the price of oil to less than $30 per barrel. A deal was later made between OPEC and other oil producing countries that to cut down of production causing the supply to reduce, but wasn't enough. Other countries started to take advantage of it, stored much of the oil, but then came the recent pandemic which caused the use of oil to drop thus causing increase of supply once again and the oils that were stored was not being used at all. This in turn caused prices to drop more. Now the oil war isn't something new, this kind of event has been taking place for a long time which ends up with a deal being made. Then another problem rises and so on causing the price to jump up and down.