Ask Me Anything US Crude Oil is down near $5.00 a Barrel

[Graybeard]

Oh Noes!!!

No demand, FAKE OPEC deal is dead ...

 

[T J Tutor]

Love it, it's about time! It has been around that and less in some South American countries for 5 decades!

 

[Graybeard]

My Dodge 250 V12 just went up $2,000 in value today LOL

 

[azgold]

I just saw on the Canadian news today that it's around $11 a barrel, expected to go down to $10ish very soon. Lowest price since 1986.

I've no doubt that once people are allowed to go out to work again, that'll shoot back up.

 

[Graybeard]

now they are paying you to take it WTF? this is crazy

U.S. crude futures turn negative for first time on scant storage, weak demand

 

[azgold]

Wow, I know that I was only listening with half an ear when I heard the $11/10 before but boy, did I miss the most important part - ours is negative, too.

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Upside is, people are very much enjoying the much, much cheaper gas prices. Assuming they go out to get it.

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[Graybeard]

Margin calls $-54 this is monumental

 

[Graybeard]

New day new nightmare
OPEC Sheiks are spitting oil
Look at today's price of Brent Crude ...

 

[azgold]

Wow! That must be historic.

Maybe they'll start paying us to gas up.

 

[Graybeard]

That is not what will happen here ...
Oil producers will have to pay out to what were buyers or default.
Gasoline costs the price of the refining costs + governmental taxes for it's sale to the end users --even if the crude oil was "free".
I can't see gasoline or diesel priced below cost.
I can see possible shortages until the demand for the product increases.

 

[azgold]

I can't see gasoline or diesel priced below cost.

I'm sure you're probably right about that. Besides, we do not want oil companies to go bankrupt, we need them.

I can see possible shortages until the demand for the product increases.

That's how they'll get the prices back up, I imagine. "Shortages" reminds of when people lined up to fill up, so many years ago, forget which decade - 70s? 80s?

 

[Graybeard]

Both --but they were manipulations of the OPEC cartel --financial criminals --under color of authority ...
Most likely scenario is: When the current inventory begins to deplete the oil price will find it's market (or manipulative) levels.

I think the cost of production in the US and Canada of shale or tar sands crude oil is around $42USD maybe less now?

 

[Graybeard]

Market went up a bit after Trump threatens to *shoot down* Iranian *flying* gunboats harassing US Navy ships ...
(@_@) Back in the day when I sold oil well working-shares (LLP) an old pro told me: There is no such thing as a 'straight' oil deal (meaning they are all crooked to some degree).