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U.S. Oil Prices Fall To $11 Per Barrel In Historic Crash

onthebottom

Never Been Justly Banned
Jan 10, 2002
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Crazy crash in oil.....

U.S. Oil Prices Fall To $11 Per Barrel In Historic Crash

The front-month WTI crude contract crashed by 37 percent early on Monday as the May contract expires on Tuesday and the market fears there is not much storage left in the United States amid collapsing demand in the coronavirus pandemic.

At 8:54 a.m. EDT on Monday, the front-month WTI Crude price was plummeting by 37.22 percent at $11.47. The Brent Crude front-month contract was also under pressure, trading down 6.02 percent at $26.39.

The U.S. oil prices are now at their lowest levels since early 1999. Analysts warn that investors and speculators have already moved to the June contract with the May contract expiring on Tuesday, but they are also cautioning that the weakness in the May contract is indicative of the shrinking storage across the U.S. threatening to be filled up within weeks.

“The expiring contract is now mostly in the hands of physical oil traders and the behavior of the contract confirms what we already feared: That the U.S. is running out of storage at Cushing, Oklahoma, the delivery hub for WTI crude oil futures traded in New York,” said Ole Hansen, Head of Commodity Strategy at Saxo Bank.

“Speculators having bought the June contract now risks that it could get pulled lower over the coming weeks towards where the May is currently trading. Only a major change in the fundamental outlook through lower production, due to producers being forced out of business or leave wells idle, or improved demand for fuel can prevent,” Hansen noted.

The new OPEC+ production cut deal is not expected to alleviate the glut in the coming weeks, as global demand is falling by 30 million bpd these days—down 30 percent from the typical consumption of oil in the world.

Storage, therefore, is filling fast everywhere around the world. In the United States, the prices of some grades in Texas were nearing negative territory as early as last week, with customers bidding to pay only $2 per barrel for South Texas Sour and $4.12 a barrel Upper Texas Gulf Coast last week, Bloomberg reported, citing pricing bulletins.
 

scourge

Well-known member
Sep 1, 2002
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Who would have thought you could get a barrel oil for less then a bucket of chicken.
 

jcpro

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Jan 31, 2014
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Do you people even know what this mean? It means that the economic activity has stopped. NOT slowed down. Stopped!!!! If the economy is not restarted in the next couple of weeks, the financial markets are going to crash. That means runaway inflation, collapse of the supply chains and a permanent 50%+/- unemployment. And a misery like you have never seen before.
 

SchlongConery

License to Shill
Jan 28, 2013
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Do you people even know what this mean? .


Nope, none of us people know what it means. We aren't all as smart as you!

But I just heard that the price of oil is now below zero. Russia and Saudi Arabia's fight and resultant flooding of the oil market along with the 30% drop in global oil consumption has caused the oil storage facilities to become FULL!

So, many of the bullish oil companies that took on massive debt are going to file for bankruptcy soon.

In good news, the global fleet of tankers will be charging big money to store petroleum.
 

jcpro

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Jan 31, 2014
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jcpro

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Jan 31, 2014
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I can understand why you are bored by what other people say. You already know everything and aren't interested in what others say. ;-)
You didn't say anything.
 

shack

Nitpicker Extraordinaire
Oct 2, 2001
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Toronto
Crazy crash in oil.....

U.S. Oil Prices Fall To $11 Per Barrel In Historic Crash

The front-month WTI crude contract crashed by 37 percent early on Monday as the May contract expires on Tuesday and the market fears there is not much storage left in the United States amid collapsing demand in the coronavirus pandemic.

At 8:54 a.m. EDT on Monday, the front-month WTI Crude price was plummeting by 37.22 percent at $11.47. The Brent Crude front-month contract was also under pressure, trading down 6.02 percent at $26.39.
Which begs the question that since gas was at 70 cents a litre or lower a few weeks ago, why is it now at 82 cents?
 

Frankfooter

dangling member
Apr 10, 2015
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Do you people even know what this mean? It means that the economic activity has stopped. NOT slowed down. Stopped!!!! If the economy is not restarted in the next couple of weeks, the financial markets are going to crash. That means runaway inflation, collapse of the supply chains and a permanent 50%+/- unemployment. And a misery like you have never seen before.
Yawn.
 

onthebottom

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Jan 10, 2002
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Which begs the question that since gas was at 70 cents a litre or lower a few weeks ago, why is it now at 82 cents?
I paid 1.069 for a gallon at Costco yesterday.

Must be that carbon tax :bolt:
 

onthebottom

Never Been Justly Banned
Jan 10, 2002
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Nope, none of us people know what it means. We aren't all as smart as you!

But I just heard that the price of oil is now below zero. Russia and Saudi Arabia's fight and resultant flooding of the oil market along with the 30% drop in global oil consumption has caused the oil storage facilities to become FULL!

So, many of the bullish oil companies that took on massive debt are going to file for bankruptcy soon.

In good news, the global fleet of tankers will be charging big money to store petroleum.

WTI is -13.100 as I type this. Don’t know what this means for WCS given it sells at a discount ($13-15) to WTI.

https://oilprice.com/oil-price-charts#prices
 

Phil C. McNasty

Go Jays Go
Dec 27, 2010
25,136
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We're fucked. This is not looking good!!

Trudeau, the EU and Trump are gonna have to open up their economies, otherwise the cure becomes worse than the disease
 

danmand

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Nov 28, 2003
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Darts

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Jan 15, 2017
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The new economy means less need for oil.

Spoke to a guy at one of the big banks. He said working from home will be the norm for many service workers. No need to take your car or bus to work. Maybe selling the 407 wasn't such a bad idea after all.

Air travel will be drastically reduced. I'm ok with that. I've done enough travel for one (maybe even two) lifetimes. No need to see London (U.K.) or Paris or Spain or Hawaii, or, or, again. My only regret is not making it to Key West before it sank into the ocean/sea.

The Saudi Royal Family already have their exit plan in place.
 

danmand

Well-known member
Nov 28, 2003
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I don't quite understand why the oil price goes negative. It is not like electricity generation, where you cannot turn it off.

Can you not just stop the flow from an oil well?
 

toguy5252

Well-known member
Jun 22, 2009
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Do you people even know what this mean? It means that the economic activity has stopped. NOT slowed down. Stopped!!!! If the economy is not restarted in the next couple of weeks, the financial markets are going to crash. That means runaway inflation, collapse of the supply chains and a permanent 50%+/- unemployment. And a misery like you have never seen before.
It means that at some point the oil companies will be looking for billions of dollars an you or one of your fellow travelers will explain how that is capitalism.
 

shack

Nitpicker Extraordinaire
Oct 2, 2001
46,710
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Toronto
I paid 1.069 for a gallon at Costco yesterday.
And what relevance does that have to the price in Toronto going up while the price of crude goes down? I don't think that any new taxes were added in the last few weeks.
 

Gooseifur

Well-known member
Aug 13, 2019
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I don't quite understand why the oil price goes negative. It is not like electricity generation, where you cannot turn it off.

Can you not just stop the flow from an oil well?
Because all the storage facilities are full. they will have to pay people to take the glut of oil of their hands.
 
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