lol, I just imagined a Focus with dildo spikes around the makeshift turret coming out the top with a mad max looking character (pink leather and mohawk) throwing confetti at every one.
Not how supply and demand works. The price is going to ping-pong up and down for a while because of this. When demand is destroyed, the price is destroyed. The sellers aren't going to sell it at a significant loss, so they'll just hold onto it and not buy from the producers. The producers will stop producing because they have no one to sell to, so as the existing supply in the market dries up, it will become more and more scarce, thus dragging the price up and starting up the supply chain again. It's unlikely this will happen smoothly as there are naturally lag times.
That oil is scheduled for delivery tomorrow, at which point the oil price ticker will update to reflect futures for June delivery which is currently at $22/bbl.
Because there is a physical reality to this. The contracts crashed because there was literally no room for deliveries. Commodities are not like stocks where its just paper. this market represents a physical exchange of goods that goes with it.
Somebody somewhere is sitting on a ton of oil right now that is not moving
We can't afford to pump oil at these prices. Iran wanted this. As did Russia. Prices this low aren't good. Oil companies can't pump/ sell oil and still have enough money to pay wages. We're about to get a good lesson into just how much of our money is supported by oil prices.
But there is a monumental difference in economics of scale between US shale plays and Russian oil field plays. The US shale plays can be turned off and on relatively quickly, efficiently, and cheaply. Its more like swarm technology. The Russian oil field production is mostly in areas that need to keep pumping otherwise the weather conditions alone can cause 1-2 year production delays and cost tens of billions of dollars in lost revenue and repair costs.
As bad as it is for the frackers right now, they will be able to bring production back on-line much more quickly and cheaply than the Russian will if production halts.
The largest oil percentage drop in a single day will be followed by the largest ever percentage increase the next day. To quote some hillbilly from Beverly Hills.....
OPEC? Cause they're dicks and they hate us. We turned into net oil exporters, thanks to Trump, and with the much decreased demand because of the world shutting down over what turned out to be nasty cold, they decided they'd take advantage of it, oversupply and tank the price to where our guys (on US soil / Water) couldn't afford to produce anymore. They'd muscle out the competition that way.
Then I heard what sounded like a voice among the four living creatures, saying, "Two pounds of wheat for a day's wages, and six pounds of barley for a day's wages,and do not damage the oil and the wine!"
The thing is, each of those could have a different meaning than actual wheat, oil and wine. But at the same time, it might also just be literal.
So, now that the world economy is shut down, it makes sense for food to become expensive and it's interesting that oil does the opposite, becoming very cheap. Which reminded me of this verse, but that doesn't mean I think it's fulfilled, it might, it might not.
And then again, food isn't expensive yet, and the oil industry seem to be kinda damaged from it, so you could even argue the opposite.
So is this like a reverse Mad Max apocalypse, where gasoline is everywhere, but for some reason everyone drives tiny, high-efficiency, electric cars?
lol, I just imagined a Focus with dildo spikes around the makeshift turret coming out the top with a mad max looking character (pink leather and mohawk) throwing confetti at every one.
"But I guarantee you that a hundred and sixty days ride that way... there's nothing but salt"... Mad Max
something like this?
https://bigmemes.funnyjunk.com/comments/And+tape+giant+dildos+to+the+front+of+our+cars+_22029a8e3ca3fcf6ae1788587f9a0cf9.jpg
"Watch your mouth - I've got an itchy triggered finger"
It's all my fault. I just switched from oil heating to electric this March. My bad choices caused the collapse of the Civilization.
Sucks to be them cause they can't fill up haha (yes I'm over simplifying the situation for a joke)
Not how supply and demand works. The price is going to ping-pong up and down for a while because of this. When demand is destroyed, the price is destroyed. The sellers aren't going to sell it at a significant loss, so they'll just hold onto it and not buy from the producers. The producers will stop producing because they have no one to sell to, so as the existing supply in the market dries up, it will become more and more scarce, thus dragging the price up and starting up the supply chain again. It's unlikely this will happen smoothly as there are naturally lag times.
Commies are downvoting your common sense.
Have my upvote to compensate.
DUDE... you just blew my fucking mind.
Fake News.
That oil is scheduled for delivery tomorrow, at which point the oil price ticker will update to reflect futures for June delivery which is currently at $22/bbl.
Then the gas stations will raise prices at the pump because the price of oil went up hundreds of percentage points in one day!
Exact. Many oil companies will also use this as an excuse to lay off millions of employees even though they are the ones getting paid to take the oil.
while that is very true, im not sure this is the end of the story
How so?
Because there is a physical reality to this. The contracts crashed because there was literally no room for deliveries. Commodities are not like stocks where its just paper. this market represents a physical exchange of goods that goes with it.
Somebody somewhere is sitting on a ton of oil right now that is not moving
A lot of people really don't seem to understand that. Alos, all the oil that is sitting in stockpiles right now is grossly overpriced.
This book ends at exactly midnight tonight, but their could very well be a sequel 30 days from now.
A month ago today's barrel was $25. Now it's -$40.
Currently the June barrel is $20. What's it going to be in a month with all of this cheap supply everywhere?
IRAN IS DEAD
We can't afford to pump oil at these prices. Iran wanted this. As did Russia. Prices this low aren't good. Oil companies can't pump/ sell oil and still have enough money to pay wages. We're about to get a good lesson into just how much of our money is supported by oil prices.
But there is a monumental difference in economics of scale between US shale plays and Russian oil field plays. The US shale plays can be turned off and on relatively quickly, efficiently, and cheaply. Its more like swarm technology. The Russian oil field production is mostly in areas that need to keep pumping otherwise the weather conditions alone can cause 1-2 year production delays and cost tens of billions of dollars in lost revenue and repair costs.
As bad as it is for the frackers right now, they will be able to bring production back on-line much more quickly and cheaply than the Russian will if production halts.
Fuck.. I hate that country.
But how else am I going to get videos of oil sheiks shitting in the mouths of "Instagram models"?
That is completely your business and I don't want to know....
The largest oil percentage drop in a single day will be followed by the largest ever percentage increase the next day. To quote some hillbilly from Beverly Hills.....
It done broke.
Invest in Hydrogen
because we can't drive anywhere unless it's "essential" so no one is buying gas
And because OPEC is over supplying.
Why are they oversupplying at a time when demand is this low? (genuinely asking)
OPEC? Cause they're dicks and they hate us. We turned into net oil exporters, thanks to Trump, and with the much decreased demand because of the world shutting down over what turned out to be nasty cold, they decided they'd take advantage of it, oversupply and tank the price to where our guys (on US soil / Water) couldn't afford to produce anymore. They'd muscle out the competition that way.
Global freighters, cruises and airplane travel also used a lot of oil. Not so much lately.
Yeah, but what a bargain! ;-)
algorithm vs algorithm
It is a good investment opportunity. Once things are going back to normal, oil prices will be booming again.
It does remind me of this
https://biblehub.com/revelation/6-6.htm
What’s your interpretation of this
food expensive, but oil and wine isn't.
The thing is, each of those could have a different meaning than actual wheat, oil and wine. But at the same time, it might also just be literal.
So, now that the world economy is shut down, it makes sense for food to become expensive and it's interesting that oil does the opposite, becoming very cheap. Which reminded me of this verse, but that doesn't mean I think it's fulfilled, it might, it might not.
And then again, food isn't expensive yet, and the oil industry seem to be kinda damaged from it, so you could even argue the opposite.
I'll take 12 tankers full. Please contact as to where to send the check.