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US Oil Price Futures Collapses into Negative Territory


Chromatic Lover

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Chromatic Lover

West Texas Intermediate futures for May delivery, which expire Tuesday, plunged more than 100% to -$37.63 a barrel (this has actually went up a little to about - $15.00 a barrel. You can track the real price here - https://oilprice.com/oil-price-charts.)That means sellers have to pay someone to take the oil off their hands. Brent crude oil prices fell 9% to $25.58 per barrel.

 

Meanwhile, the more actively traded June U.S. crude futures tumbled 18% to $20.43 per barrel, and July U.S. crude futures were down 5% to $28 per barrel.

OPEC and top non-members, together known as OPEC+, agreed to cut 9.7 million barrels of production a day in May and June, their deepest ever earlier this month. Oil majors and independent U.S. firms have scaled back capital spending and rig counts as demand dries up.

https://www.investors.com/news/us-oil-prices-have-never-been-this-upside-down-before/

Sh!t is about to get real :saladga:

I found a tweet that oversimplifies but still is correct why the price is at negative. Also this is a futures price. Actual price today is still at around $25 USD. But still, shits about to go down if something is not done. 

 

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Mister G
3 minutes ago, Chromatic Lover said:

West Texas Intermediate futures for May delivery, which expire Tuesday, plunged more than 100% to -$37.63 a barrel (this has actually went up a little to about - $15.00 a barrel. You can track the real price here - https://oilprice.com/oil-price-charts.)That means sellers have to pay someone to take the oil off their hands. Brent crude oil prices fell 9% to $25.58 per barrel.

 

Meanwhile, the more actively traded June U.S. crude futures tumbled 18% to $20.43 per barrel, and July U.S. crude futures were down 5% to $28 per barrel.

OPEC and top non-members, together known as OPEC+, agreed to cut 9.7 million barrels of production a day in May and June, their deepest ever earlier this month. Oil majors and independent U.S. firms have scaled back capital spending and rig counts as demand dries up.

https://www.investors.com/news/us-oil-prices-have-never-been-this-upside-down-before/

Sh!t is about to get real :saladga:

Yup. Fossil Fuel Industry set to get bailed out. Gotta love this administration’s priorities.

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Woolfsmck

This bad for green energy ..

Fossil fuels being this 'affordable" makes the renewables less so...

like a cat in a sil, I observe life, moving and still. My words give a clue,look inside to see whats true
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On 3/12/2020 at 1:28 AM, Luc said:

I'm just thinking... no painting, no cars, no flights, little production and little shipping for the next two months in Europe and perhaps one month in China seems realistic. The US is probably the biggest market, but considering they're royally ****ing up, we can expect similar markets. The only way such a decline in demand would not drive down the oil prices even much lower would be if oil producers stop because their employees get infected with the virus. But there's a sort of prisoners' dilemma between Saudi Arabia and Russia in stopping oil production if employees get infected, similar to the Biden vs. Bernie dilemma who would stop rallies first. I'm not going to buy and bet on higher prices, oil prices could go much lower if Saudi Arabia and other Gulf nations manage to contain the virus (don't think Russia is capable of controlling it tbh, their numbers already seem way off), while the oil doesn't get sold because the rest of the world is literally not using any oil.

 

:ohwell:

 

 

Also, does this mean Texas is in play for the general election?

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Dramatica

Saudi Arabia will finally stop declaring war or any country that is not okay with what they say :ally: And focus on internal problems :ally:

I didn't ask for a free ride, I only asked you to show me a real good time.
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Chromatic Lover
6 minutes ago, ANTI WP said:

Same :bradley:

 

9 minutes ago, Morphine Prince said:

I thought @Economy decided not to leave when I saw the title :laughga:

OMG... I'm not a fraud. I swear :selena:

 

Maybe just a little :oops:

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Chromatic Lover
7 minutes ago, Luc said:

  

 

:ohwell:

 

 

Also, does this mean Texas is in play for the general election?

Republicans can feed Texans bird sh!t and they'll still vote for them. :billie:

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Lord Temptation

This is because the travel industry and tourism is dead, and even after the Coronavirus pandemic is over, the travel industry will stay dead because people don’t trust cruise ships or airplanes anymore since this is where the outbreaks spread.

Just last night Australia’s second biggest airline Virgin filed for bankruptcy. 

Great Depression 2.0 incoming :ohwell:

I truly can’t see a way out except ALL prices falling, falling, falling :icega:

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CommonWhiteGirl
14 minutes ago, Woolfsmck said:

This bad for green energy ..

Fossil fuels being this 'affordable" makes the renewables less so...

I think it's bad for green energy now but it could be good for them in the future. The reason gas prices have plummeted is because no one's driving anywhere and cruises and airlines have halted all or most ships and planes. Once all of these oil companies go near bankruptcy (and I say near cause I'd be surprised if trump and his cronies let any oil company go bankrupt) they'll have to lay off a ton of people and slow down their production. Then, when the economy eventually opens back up, my guess is that gas prices will soar because the companies are now short staffed and production needs to ramp up again to meet the new demand. When this happens I think people will start to turn to greener energy sources. But I agree, until that happens it's bad for green energy. 

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CannaeDrive

Someone somewhere right now is literally getting paid to stock some of that surplus cheap oil and when the time comes they're gonna sell it at market price with a hefty profit. Wonder who that be.

"Fame Is A Boomerang" - Maria Callas
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Woolfsmck
3 hours ago, CommonWhiteGirl said:

I think it's bad for green energy now but it could be good for them in the future. The reason gas prices have plummeted is because no one's driving anywhere and cruises and airlines have halted all or most ships and planes. Once all of these oil companies go near bankruptcy (and I say near cause I'd be surprised if trump and his cronies let any oil company go bankrupt) they'll have to lay off a ton of people and slow down their production. Then, when the economy eventually opens back up, my guess is that gas prices will soar because the companies are now short staffed and production needs to ramp up again to meet the new demand. When this happens I think people will start to turn to greener energy sources. But I agree, until that happens it's bad for green energy. 

Good point...

People will have less money over all for some time I think too...the economy is damaged...   permanently...

So overall shifting away from gas dependence for personal transport would favor alternate types...

I'm a peddler personally, so gas is something that comes out of my hinie...🙂

like a cat in a sil, I observe life, moving and still. My words give a clue,look inside to see whats true
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