Topic: The drying oil - page 3. (Read 899 times)

Can't really help it. The majority of us won't even leave our houses after all since checkpoints are all over the place and you wouldn't even be able to pass by them without a valid reason. Not to mention the fact that most usages of the car right now are used by the government to transport food and supplies, and they only number to a few hundred in each place. If you were to compare that to how the oil usage is normally in a regular day, you'd probably see that right now, less than 1% of the original amount are being used. There's also the idea of planes not being used and they also number quite a lot, so you had to have seen this kind of thing already when various major countries started implementing lockdowns.

Car owners are really happy now filling a full tank.  

My neighbor told me how cheap it is now and he spends just a little money to fill his tank in full.
Yeah, there is a connection with Covid19.
Less vehicles are now being used outside because of the quarantine which means less demand.
Yeah, I'd rather ride my bicycle if I want to buy food at the store.

Anything can fall with just one bad news , with oil I am not very sure but I think it's the virus considering that the number of people using their cars have been lessen and the demand for the oil has been drop cause majority of countries that is affected by COVID are on lockdown right now. The other thing is the oil market has trigger a "short squeeze" so number of investor starts pulling out their money and they all started to short the oil. Anything can happen on the market, it just really takes a one bad news or someone big time messing up their money.

If you don't want to be involved with oil drying with covid-19, it doesn't matter, many other things can cause the price of oil to plummet and dry up.

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If you know that, last week, US crude oil inventories fell very quickly from the estimated only 2 million barrels, the opposite was 11.1 million barrels.
Which is estimated to dry out only 2 million barrels, but the opposite is happening.

If you see and triggered from other things such as crude oil prices rose US $ 0.81 you can say this is more than 1.4 percent if you see per barrel can penetrate US $ 59.51, this is very big influence on the drying and sluggish oilthe world today.

Well, this is going to make a lot of people understand that cryptocurrency is not the only asset or stock that can crash.Every market in the world, none is above falling, especially at a time like this. When this Coronavirus outbreak started a lot of assets and stocks started falling, and the good thing is that Bitcoin was able to recover after the slight fall, unlike so many others that found it difficult to recover. The cryptocurrency market has been recovering as of recent. Altcoins like Ethereum, Bitcoin Cash, ChainLink and a lot of them are doing just fine. I don’t see any other investment that is better than investing in cryptocurrency right now, just a few out there can compete.

There are companies who uses oil to produce stuff as well, you think the only machine that oil works is cars? There are tons of manufacturing factories that uses oil to power up their machines as well which all are closed down right now and not requiring any oil.

Also, just cars is one thing but we are talking about ships and cargo and planes and so forth, basically many thinks that require oil is all closed down right now, so it is not just your car, we are talking about ALL cars and all trucks and all planes and all ships as well, put the machines on top of that and you have yourself less than 10% of what we were using, which of course means if there is less need for oil, the price of it will go down as well since people who get the oil out can't sell it to people they usually sold to.

The drop of demand due to halt of transportation, rises uncertainty to investors and to avoid contract which lead to panic selling because no one has the capacity to store oil that comes with Oil futures contract causing a big dump recently causing Oil to breach negative territory and this may result of an domino effect which could for other Economic Institution to collapse.

Previously, world crude oil prices dropped dramatically in the midst of the Covid-19 virus pandemic. The decline in prices occurred due to market concerns over the decline in oil demand due to the Covid-19 virus pandemic...
  there are positive things in addition, the decline in oil prices can help the economy of the community in the midst of this co-19 pandemic, although activities have not returned to normal

It's actually a very long story. Although, the demand shock started it, it really was starting with a mis-timed price war between Russia and Saudi Arabia, when Russia walked out of an agreement to cut production.

That is not the main reason. to me, it's due to a shortage of oil storage. During the 3-month isolation period due to the epidemic, it seemed that all the oil depots were full and could no longer contain them. then they decide to sell to those who need to use it at extremely low prices and even give money to the buyer when buying their oil. This is unprecedented and this is an event that will be recorded in human economic history. and if in the next 2 months the price of oil is still below $ 25 / barrel then surely there will be more than a thousand businesses going bankrupt!

What is really happening in the price of crude oil??? There are a lot of things here in our world that is utilized by using oil, but somehow there are technologies that are powered by solar rays. Innovation is really helping people overcome non-renewable source related problem. I don't think that the virus really contributed to this downward movement in oil's price into zero. I believe that there are still people or industries that uses oil in their activities or work to make their products and supplies. This lockdown really make people having no work e household still uses oil just to cook food but people have no money to spend because of the quarantine. Economy have no thing to do but to deal with these changes in price.

Hmm, I can say YES for that. I mean that seems true simply because numbers don't lie. Don't worry, the oil price rollback you are witnessing is not unusual. We also experience here in our country . And this happened due to the low demand of people.

So if you have a car, better to get a full tank now before the low price lasts. That's the best move you can do right now. Though it will be useless because you can't totally use it right now due to wide lockdown, but at least you now have a plenty supply when the price go back to normal. The few bucks you save from it is not bad in all fairness.

Well, sad to say for oil companies but I guess their Black Gold weakens at this moment . 

Well I think Covid 19 has some impacts on companies who uses oil in their machines. Some companies stopped their production that's why oil have this all time low price. This virus has gone wild and affect many industries.

This is really shit by many governments as many are not going to give any incentive to common peoples same happening in our country they are still selling on very high price and taking very good profit which is not good in this lock down electercity price also very high as they are not adjusting fuel cost as its happening in world.

oil demand = 50% road transportation sector, 11% aviation and shipping. so the bulk of demand is being hit quite hard by the economic halt.

petrochemicals (including plastic feedstocks) = 14%, not nothing, but i assume that plunging general consumer demand and industrial shutdowns should cause a major decline in manufacturer demand for petrochemicals too.

https://www.statista.com/statistics/307194/top-oil-consuming-sectors-worldwide/


i'm happy to see gas prices down 25-30% but frankly i have nowhere to drive anymore and haven't filled my tank in weeks.

if im not mistake

this price is from WTI futures

most countries buy oil from Brent

There are a lot of things that depend on the oil industry, not just oil for cars and other machines.  Oil refineries are responsible for other kinds of hydrocarbons which are used in lot of other industries if I'm not mistaken. 

I haven't really been keeping abreast of the news lately, and I'm not sure why oil prices have gotten hammered in the past month or so, but it fills my heart with glee that oil is in fact getting slaughtered in the market.  I'm happy that people only have to pay $1.57/gallon of gas near where I live.  That entire sector has been corrupt for decades, and more than a century actually.  But nor do I know how the viral outbreak is playing a part in all this.  I'm kind of thinking that those two things are related, but I'm not sure exactly how.

The demand for oil isn't exactly zero, but there might have been a significant drop in it since the coronavirus outbreak.  All around the world, people have been shut up in their homes and probably haven't been doing as much traveling in their cars as they usually do.  If that's one of the contributing factors, I'd expect oil prices to rebound once life starts to get back to normal (whenever that is).  Might not be a bad time to buy some oil stocks, because they're probably good bargains right about now.

Well it is very obvious, from all of the markets falling now the only thing that caused it is the virus, almost everything that is happening now is actually because of the covid-19.

There is only significant in the oil price, not in the demand therefore it has nothing to do with the oil price at all. So what if the price hits the ground? If no one will buy it or sell it right now it should be fine. And some of you guys might wonder why is the current price of oil or gas right now have not change yet, simply because it was not from the price were they bought it, in short they were stock.

Its simple, there is no demand for oil across the world, we can say that only cars are not running but we need fuels for other machines but every government keep the required fuels in the stocks so they will use that oil for now and production companies are even willing to give it for free no government is ready to take it because almost every country filled their stock level when it hits $30 range but now it keep falling.

We know that most countries affected by the pandemic implement social restrictions and lockouts that result in reduced oil consumption in all countries, while oil-producing countries must continue to produce so that the contract price of oil in April reaches minus this is the worst event of all time.