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Oil is now at $13.32 (NOW $4.00) [Not anymore, now it's $1] {We're in Negative Land now}
- Thread starter hwarang
- Start date
Went early this morning and filled up the tank (it was in the red). Cheapest I've paid for a full tank in Los Angeles for years, even better in that I only drive five blocks max to the grocery store or take out joints maybe two/three times a week.
It is stopping. People need to realize the changes to the market are happening fast and shutting all of this down takes time. My company, which is one of the larger mid-tier service companies, has just finished shutting down what we could this week. That means up until last week or the week before we were still extracting oil. That oil still needs to end up somewhere. The lag continues down the supply chain.
Last I saw was around 20/brl which is still pretty catastrophic for the industry
You can but you first would have to move it to the coast as WTI is landbased.
At the moment but it will probably tank even deeper
Maybe, but really the driving force behind renewables was the high price of petroleum, and now it's so cheap most companies will just use it instead of investing into other power sources.
And there's no way to directly or indirectly invest in oil or companies that are very dependent on the value of oil, correct?
they are storing millions of unused barrels of oil
supply and demand , yeah
You can buy stock in companies such as Exxon, or other oil related companies. Or buy oil related etfs that either invest in oil related companies or ones based on Oil futures such as USO.
lol where are you going to store it and who on earth is going to buy barrels from some random dude.
If it stays around here I'd guess in about 2-4 weeks it would be below a 1$ a gallon in some places. But I don't know how the price works, I doubt gas stations will go that far down because they have to remain in the green somehow.
I mean virtually like any trade in futures. People buy and sell all sorts of commodities without actually dealing in the physical commodity itself.
Yeah it will take a week or two I'm sure at these prices. But why wouldn't they be in the green still if they're able to buy barrels for this cheap right now?
it takes time to catch up, but I have seen prices consistently falling 5 cents or more day to day for over a week now
I don't know. The only thing I do know is oil is lagged by a few weeks. I don't know how the price is set at stations. Some states have higher oil taxes than others.
Now is a good time to apply a little boost to the oil tax though, to help rebuild our infrastructure.
This is a short term thing where producers are basically giving oil away rather than pay to store it. This is also shale oil that has to be heavily processed to make gas or plastic. It means that we are going to see a fall in production soon that will hurt states dependent on the oil industry for revenue but everyone else will save some.
WTI literally is West Texas Intermediate. The fields out in west Texas are so spread out it costs a lot to haul oil to a pipleline so it can be shipped to Houston for processing.
