Posted on 04/20/2020 10:33:08 AM PDT by tatown
U.S. crude futures for May delivery, the near-term contract, sank to their lowest level on record ever Monday, falling below $10 a barrel as traders fretted over the capacity of storage facilities both in the U.S. and abroad. At last check, West Texas Intermediate crude fell 74% to $4.72 a barrel. Contacts for June delivery declined 23%.
"In my view, the plunge in oil prices speaks to the decline of global growth as demand dries up," said Dan Russo, chief market strategist at Chaikin Analytics, a quantitative investment research firm based in Philadelphia. "This could be a concern for investors who were expecting a V-shaped recovery on the economic front. Oil prices tend to be a gauge for the health of the global economy. It's difficult to be bullish on global economic growth with oil prices at multi-decade lows."
(Excerpt) Read more at thestreet.com ...
I just saw $1.28 brl - unprecedented
Can anyone explain to me why low oil prices are bad and high prices are good?
I’d rather like .50 cent a gallon gas and diesel again.
1.04 now.
The president needs to for national security and will soon put a reasonable tariff on all oil entering the US.
Losing our capacity to produce 100% of our needs will make us vulnerable in a national emergency.
the free market in action.
The last price I saw for MAY 2020 future is $2.73/barrel!!
But if you look at prices further out - say February 2020 - the price is $34+/barrel.
If you had a good way to store large amounts of oil, you would make a fortune (and some traders are)
Also, the May futures contract is expiring, so anyone holding it, who doesn’t intend to take delivery must get out and roll to June or beyond. What the market is telling us that while oil overall is a lot lower, industry people still believe the price will be much stable/higher in the next 6-12 months.
Oddly, my energy-related stocks are up, in aggregate, today, while the market as a whole is down, supposedly because of a drop in oil demand.
You really want a reply of the 1973 oil crisis?
Were you old enough to drive during that period?
Aren’t we buying up US crude to replenish the Strat Reserve?
We’re still $2.15- we just dropped a ‘whopping’ 3 cents today-
It could go negative.
Aren’t we buying up US crude to replenish the Strat Reserve?
====================================Yes. Smart move while it is cheap.
Also helps slow the price decline.
I’m looking at FOX Business Crude Oil....now $1.30
[[If you had a good way to store large amounts of oil, you would make a fortune (and some traders are)]]
Starts digging a hole out back- looks into small loan, buys plastic liner for massive hole in ground- buys ‘no trespassing’ signs
Their maximum capacity is 797 million barrels. But according to their current status, last updated Apr 17, they are only at 635, and there has been no movement up or down so far this year ---
There's little storage remaining. The people making money are short on their contracts.
F'n Chuckie Schumer pulled the funding on that.
i meant our gas prices- heard some states are selling near $1.00 p/gallon- we’re always $1- $1.50 p/g higher than national average-
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