History Made Today - WTI Crude Closes at $-37.63

[45Doll 5,877]

Yes, the WTI crude price closed with a negative value.

You've heard the possibility of negative interest rates, where you pay the bank interest to hold on to your money. I have no idea what this will portend in the long term. I hope it's just some kind of production vs. storage capacity vs. usage anomaly. 

If it turns out to be the harbinger of the unthinkable for our economy, remember April 20.

Additional from Fox Business.

Edited April 20, 2020 by 45Doll
Link added.

[Krdshrk 3,877]

Dang.  I'll take some money to store a barrel or two... oh wait it's unrefined nvm.. lol... 

[Mr.Stu 1,922]

This is due to speculators who do not have any storage. They bought futures which were deliverable today with the expectation that they would sell them on at a profit before the realization date. With a huge amount of the world shut down, oil consumption has dropped precipitously and the storage facilities are filling or have filled up. The speculators are having to pay others to deal with the oil that they can't possibly take delivery on.

These are the same type of speculators who drove up the oil price following the 2007 crash. They get no sympathy from me.

What does it mean for the future? Nothing very good. There are a lot of facilities closing down because of lack of demand and lack of storage. When things start moving again there will be a ramp up time to get those facilities back up and running. Prices are going to seesaw I think.

[carl_g 568]

its all trumps fault.. should be a good press conference today. Let's see how many people he tells to shut up today LOL!

[Displaced Texan 11,752]

I was hoping to lease the drilling rights to the ranch this year...looks like that might not happen. 

[Greenday 323]

Well, the world all over increased and increased production then all of a sudden no one is driving. The ratio of supply and demand flip flopped. Gas is under $2/gal. Good time for these huge oil companies to spend some of the billions of dollars they've made year after year to invest in alternative sources of fuel. More research jobs to come up with more efficient methods, more engineering and construction jobs to manufacture and design equipment. They'll be better prepared for when oil becomes scarce. They won't have to worry as much about having tons of product sitting around degrading. The time for them to invest in cleaner, more efficient fuels is now.

[Ray Ray 3,566]

16 minutes ago, Greenday said:

Well, the world all over increased and increased production then all of a sudden no one is driving. The ratio of supply and demand flip flopped. Gas is under $2/gal. Good time for these huge oil companies to spend some of the billions of dollars they've made year after year to invest in alternative sources of fuel. More research jobs to come up with more efficient methods, more engineering and construction jobs to manufacture and design equipment. They'll be better prepared for when oil becomes scarce. They won't have to worry as much about having tons of product sitting around degrading. The time for them to invest in cleaner, more efficient fuels is now.

I like how liberals like to tell other people how to spend/invest their money.   Funny.

[Mr.Stu 1,922]

51 minutes ago, Greenday said:

Well, the world all over increased and increased production then all of a sudden no one is driving. The ratio of supply and demand flip flopped. Gas is under $2/gal. Good time for these huge oil companies to spend some of the billions of dollars they've made year after year to invest in alternative sources of fuel. More research jobs to come up with more efficient methods, more engineering and construction jobs to manufacture and design equipment. They'll be better prepared for when oil becomes scarce. They won't have to worry as much about having tons of product sitting around degrading. The time for them to invest in cleaner, more efficient fuels is now.

So the correct response to having too much fuel on hand is to find other fuels to use instead of the stuff you have too much of and don't know what to do with.

You give new meaning to special.

[45Doll 5,877]

BTW today gas at the Quick Check on 206 in Hampton was $1.93. So we have great gas prices while we are not supposed to drive anywhere.

[Smokin .50 1,907]

1 hour ago, Mr.Stu said:

So the correct response to having too much fuel on hand is to find other fuels to use instead of the stuff you have too much of and don't know what to do with.

You give new meaning to special.

I had to cook dinner & ya beat me to it, lol!  Greenday is the type of character to put cheap, useless, we-have-so-much-we-can-burn-it-anywhere gasoline in a camp stove & then blame Trump when he burns-down the entire campground  

[JackDaWack 2,895]

I made a lot of money with that stock years ago, well before they did a reverse split on shares. 

 

 

How do i buy it at -37 dollars? do they pay me to take stock?

[Displaced Texan 11,752]

1 hour ago, Mr.Stu said:

So the correct response to having too much fuel on hand is to find other fuels to use instead of the stuff you have too much of and don't know what to do with.

You give new meaning to special.

He doesn’t know whether to check his ass or scratch his watch.....he ain’t too bright. 

[WP22 1,558]

14 hours ago, Mr.Stu said:

So the correct response to having too much fuel on hand is to find other fuels to use instead of the stuff you have too much of and don't know what to do with.

You give new meaning to special.

Other much more expensive fuels to produce. Lib logic; "we are losing our shirt producing this cheap source of energy nobody needs right now. Let's make beaucoup profits producing this expensive energy nobody needs right now"

GD must be subscribed to Ms. Cortez twitter feed. She came out with that brilliant idea earlier in the day.

 

[Old Glock guy 1,127]

13 hours ago, 45Doll said:

BTW today gas at the Quick Check on 206 in Hampton was $1.93. So we have great gas prices while we are not supposed to drive anywhere.

Quick Check here in Wayne is the same price.  I can't help thinking that without the 30 cents per gallon that our legislators dumped on us a couple of years ago, we would be down to around $1.50 a gallon. Wonder how long it will take them to increase the tax while gas prices are so low?

[Handyman 5,682]

5 minutes ago, Old Glock guy said:

Wonder how long it will take them to increase the tax while gas prices are so low?

Have no fear, they will be on a roll soon. Gas taxes way down, sales taxes down. Municipal budgets are probably getting killed by falling traffic citations so cops are ordered to write stupid tickets for people not staying home. 

 

[Mr.Stu 1,922]

1 hour ago, Old Glock guy said:

Quick Check here in Wayne is the same price.  I can't help thinking that without the 30 cents per gallon that our legislators dumped on us a couple of years ago, we would be down to around $1.50 a gallon. Wonder how long it will take them to increase the tax while gas prices are so low?

It is built into the gas tax bill they passed under Christie. If revenues fall because of declining sales they increase the tax to compensate.

They will take their pound of flesh, regardless of how big the body is.

[RUTGERS95 890]

12 minutes ago, Mr.Stu said:

It is built into the gas tax bill they passed under Christie. If revenues fall because of declining sales they increase the tax to compensate.

They will take their pound of flesh, regardless of how big the body is.

unreal and people should be revolting!!!!

 

Rev was fought over 1/2 penny tax and look at us now

 

 

[45Doll 5,877]

OK, here's a pretty logical explanation. At least for part of the problem.

In brief, it costs more to store oil than to buy it.

[RUTGERS95 890]

buy this market

[Greenday 323]

24 minutes ago, 45Doll said:

OK, here's a pretty logical explanation. At least for part of the problem.

In brief, it costs more to store oil than to buy it.

I'm not sure about crude oil, but for stuff like regular gasoline, the longer it sits, the more it degrades and the lighter components of the case degrade really fast. Diesel will see similar degradation but not as fast. Not sure about heavier oils. But as far as storing the gas most of us put in our passenger cars, any kind of long-term storage is going to be awful for those companies.

[Handyman 5,682]

Heavier oils will be ok. They survived for the last 100 million years. Not much volatile stuff to escape. 

[JackDaWack 2,895]

22 minutes ago, Greenday said:

I'm not sure about crude oil, but for stuff like regular gasoline, the longer it sits, the more it degrades and the lighter components of the case degrade really fast. Diesel will see similar degradation but not as fast. Not sure about heavier oils. But as far as storing the gas most of us put in our passenger cars, any kind of long-term storage is going to be awful for those companies.

No one stores refined gas or diesel, at least never with the intention for long term.

If output drops, they slow or shut down the refineries... hence the build up of crude oil

 

 

But if oil is basically free right now, of course anything would cost more money including storing it.. but if we have storage capabilities we might as well fill up our reserves for near nothing. 

[Displaced Texan 11,752]

Trump just bought 75M barrels for the US Strategic reserve 

[Greenday 323]

24 minutes ago, Displaced Texan said:

Trump just bought 75M barrels for the US Strategic reserve 

As good as a time as any. 

[Old Glock guy 1,127]

Anyone remember "Peak Oil"?

[Zeke 5,504]

17 minutes ago, Old Glock guy said:

Anyone remember "Peak Oil"?

That date moves faster then my prom

[45Doll 5,877]

2 hours ago, Old Glock guy said:

Anyone remember "Peak Oil"?

Now that you mention it, the brother of a friend who is a geologist for oil producers always said 'peak oil' was BS. 

Looks a lot like he was right. Once price is not a consideration, there's more than enough pumping capacity to go around. Although fracking in the U.S. market certainly put the heat on other oil producing countries.

[WP22 1,558]

The problem with the peak oil model is that never took in consideration the advancements in exploration technology, fracking, deep wells, horizontal drilling and so on. It never allowed for man's inventive spirit. It always assumed we would explore for oil just like Jed shooting into the side of a mountain.

 

[matty 810]

Earl Scruggs will always be the man on banjo--

 

[Handyman 5,682]

23 minutes ago, WP22 said:

The problem with the peak oil model is that never took in consideration the advancements in exploration technology, fracking, deep wells, horizontal drilling and so on. It never allowed for man's inventive spirit. It always assumed we would explore for oil just like Jed shooting into the side of a mountain.

Exactly. Peak oil is an old concept, from back in the days when there were only like 2 genders.