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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
The WTI oilfields are in western texas and new mexico. You'd have to transport millions of barrels per day and have the appropriate infrastructure + tankers on shore.
Crude Oil Prices Today - Live Chart
Live interactive chart of West Texas Intermediate (WTI or NYMEX) crude oil prices per barrel.
www.macrotrends.net
Could be wrong, not sure.
Your car doesn't run on crude oil. And then there's taxes on top of that.
"Hey, babe? Do you want cheese on your...shit. oh my god!!"
"Aiiieeeeeeeee!! It burns!"
I heard there are currently tankers on the way to the US with 20 million barrels of oil from saudi arabia as part of the deal trump made
Imagine this but with oil barrels."Hey, babe? Do you want cheese on your...shit. oh my god!!"
"Aiiieeeeeeeee!! It burns!"
TP and oil as currency, one step closer to Mad Max.
"Hey, babe? Do you want cheese on your...shit. oh my god!!"
"Aiiieeeeeeeee!! It burns!"
Yo this is all I'm thinking about! How much does a barrel cost to make.
edit: thanks Lonestar for the info!
i all of a sudden want to take a cross country car trip in a gas guzzling automobile of some kind
Oil is officially styrofoam peanuts.
It would cost more to buy an empty barrel than to buy a barrel with oil in it, because nobody wants to deal with worthless oil.
It would cost more to buy an empty barrel than to buy a barrel with oil in it, because nobody wants to deal with worthless oil.
This will probably knock gas in Seattle down to like, $3.75 a gallon!
I wish I were kidding...
I think Cali and Hawaii have it worse tho.
I remember seeing 99 cent gas once in New Jersey when I visited my GF at the time, when it was > $2.50 in cali. Seeing less than a dollar felt CRAZY.
I guess Shell and Chevron will just have to stay afloat by <checks notes> rolling around in vast govt subsidies, having obscene cash reserves, making fewer glossy climate concern ads and tripling the sales of Gas Station Boner Pills.
I wish I were kidding...
I think Cali and Hawaii have it worse tho.
I remember seeing 99 cent gas once in New Jersey when I visited my GF at the time, when it was > $2.50 in cali. Seeing less than a dollar felt CRAZY.
I guess Shell and Chevron will just have to stay afloat by <checks notes> rolling around in vast govt subsidies, having obscene cash reserves, making fewer glossy climate concern ads and tripling the sales of Gas Station Boner Pills.
Probably true, but they aren't literally selling it in barrels, it's just a measurement.
Contract for may is up tomorrow so this is probably the closes we're getting to the actual physical prices paid in texas right now. Which makes sense because there are multiple reports that traders buy it at $2.
May prices are the closest prices we have to the actual physical prices while futures for june/july are forecasts that'll likely drop the closer we get to actual delivery dates.
If people are going to be stuck with contracts they can't execute since it is closing on expiration, it is very possible for this to go negative. Literally paying people to take the contract. Way too much oil for this month.
Also to the comment about the barrel costing $50, they really don't store oil in barrels anymore in mass....but funny!
Also to the comment about the barrel costing $50, they really don't store oil in barrels anymore in mass....but funny!
Because is inland and is not usually transported to the coast, so there is no infrastructure in place to do it easily.
Taken from: https://seekingalpha.com/article/4338551-why-wti-crude-is-crashing-much-today
The Simple Explanation
First, we need to consider what's actually being traded here. On one side, the crashing contract is traded on NYMEX under the ticker CL. Now consider the following regarding this contract:
- This contract stops trading on the 21st of April (tomorrow).
- This contract is settled physically.
Now consider what the Brent contract traded on ICE actually represents:
- The front-month is the June contract. It stops trading on April 30, so very comparable to the WTIC May 2020 contract.
- This contract is settled in cash.
Hence, for the WTIC front-month contract, you have extreme forced selling pressure from all the traders holding the contract which can't possibly go beyond tomorrow holding it. For the Brent contract, you have no such pressure. You also don't have such a thing for the June WTIC contract yet, simply because it doesn't stop trading for another month.
The end result is what you see.
On the buying side of the WTIC May contract, and except for those who were short the contract and can't possibly deliver crude either, you have only those who can take oil into storage. That's actually a potentially very profitable trade – to just buy this discounted oil, store it for one month, and then deliver it to the June CL buyers. However, there is a very limited public who can take advantage of this.
Conclusion
The extreme selling you're seeing in the front-month crude contract today, which will make the news everywhere today, is driven by this simple mechanism. There is extreme forced selling in this front-month contract because any speculators that can't take physical delivery have to sell these contracts today, no matter what.
This isn't happening in Brent simply because Brent crude contracts settle in cash. Thus, any speculator can take them to their expiry without being forced to sell at any price, a "luxury" not available in WTIC crude futures.
What's the word I'm looking for when I realize that this is the ten-year anniversary of Deepwater Horizon? Coincidence? Irony?
the underlying issue doesn't solve itself just because there is a new month ahead. Oil could be 20$ again tomorrow, but it would drop again in the following days.
