Posted on 04/01/2020 3:41:07 PM PDT by nickcarraway
After having crashed nearly 70 percent in the first three months of 2020, benchmark WTI prices are trying to form a bottom around $20 per barrel.
But this psychological threshold is looking increasingly shaky as global crude storage facilities are filling up at an unprecedented pace. OPEC and its partners officially ended their output cut deal today, following the words of Russian Energy Minister Novak that every producer is ‘’free to pump at will’’.
With a flood of physical crude set to hit the market, it will take weeks, not months, for global oil storage space to run out. The storage problem could grow even worse as refining capacity is coming offline due to coronavirus health risks and in some cases a (very) negative crack spread caused by a double whammy of low fuel demand and crude oversupply.
Oilprice.com’s Alex Kimani wrote on Saturday that refining crack spreads are now negative in both US and Asian markets. This means that refiners must pay for every barrel they refine into fuel, which will inevitably lead to even lower demand for crude feedstock.
The gap between supply and demand in oil markets is expected to grow increasingly pronounced this month. Trading giant Trafigura’s chief economist now expects demand for crude to fall by 30 million bpd in April as around 3 billion people remain under lockdown worldwide.
In the meantime, OPEC producers Saudi Arabia and the UAE are preparing to flood European and Asian markets with crude. Bloomberg reported that the Kingdom’s supply has now officially surpassed the 12 million bpd mark,
(Excerpt) Read more at oilprice.com ...
Early 1970s, a barrel of oil went to $40 during the oil embargo and gas hit $1.00 per gallon. Saudi Arabia is largely responsible for 9/11 and now this. It’s time to sever ties with those thugs.
I know, I witnessed it.
But to read comments here on this thread, you would think what I saw was all a mirage.
So, let me get this straight: We get to keep our oil in the ground for future needs and emergencies, and we get oil from the rest of the world at dirt cheap prices.
Please, don’t throw me in that briar patch! We don’t want to keep our oil and get everybody else’s dirt cheap!
Put a tariff on it
I paid $2.35 at Costco Covington.
Democrats are Treasonous.
Where’s that? Plus CostCo members get a better price on gas.
Yes, I think it can be done since we fill our strategic reserve by pumping it in, and the president hinted he has a plan ... you may have outed his plan!
They may work for the oil companies as pumpers and work cows on the side. They are not “oil companies”. They are employees.
Yep, even with gasoline at $1.50 a gallon, there are people on this site who still think they are getting ripped of by the evil oil companies. The same people who pay more for a gallon of milk. Or a case of bottled water.
Right. They tried this before and all that ends up happening is bankruptcies followed by stronger companies buying up the assets. I drove through Hobbs a few weeks ago and there were several new hotels and restaurants going up. Some banks are going to take it in the shorts as are apartment and home builders.
Yes they can. Unfortunately, if they are newer wells, they were drilled with borrowed money.
The US should guarantee $50/bbl for domestic oil.
And require all US refineries to use 80% domestic oil.
And require US gasoline retailers to use 80% US refinery product.
Of course, they could avoid all the paperwork and accounting by going 100%.
It’s a STRATEGIC issue.
National security and all.
The energy industry employs up to 7% of the US working population. The cascading layoffs and furloughs that are beginning to occur, when combined with the layoffs of the service sector including hospitality and retail, will be devastating. For those of you wishing for $1 gas, remember that Texas is still heavily dependent upon the oil industry for employment. Massive unemployment in Texas is not good for the country nor for the President, politically.
My view: move our troops out of Saudi Arabia. Why on earth should we protect them when the continue to try and destroy us in this arena?
What town are you from?
If you’re around Poplar Bluff do you know of Eddie Justice?
I’m from Osceola, Mo.
Eddie is a friend of mine running for state senate.
Sad isn't it? Most Americans have no earthly idea how much their lives have been made more comfortable and free by oil products. Big oil has been an easy target to demonize all these years but the ones making the most money off of a gallon of gas are the ones doing the insults, government.
Here's a good song about the value of oil in your life. In fact it makes the point that your life literally depends on oil.
If anything, this situation has given rise to every sleazy politician there is. Locals, State and on a national level. They stand there pontificating showing their ignorance and their lust for power. I'm sure they believe they have everyone fooled with their self perceived 'brilliance'. They are out of control issuing their little 'edicts'. Sick.of.it
Preach.The.Message.
Amen brother.
Saudi Arabia is not trying to crush U.S. shale. The Saudis are trying to crush Russia and Iran.
When they start paying $5 a barrel to take it off their hands, I may “purchase” 10 million barrels ...
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