Posted on 04/20/2020 10:42:36 AM PDT by ConservativeInPA
Bottom line is there is very little storage remaining. Saudi's are shipping oil our way. F'n Shummer pulled money for the last COVID-19 bill to fill the strategic national reserve. Cushing, OK is about full. If future contracts fall below $0 and stay there until expiration, then oil producers will have to pay buyers to take oil off producer's hands.
I don't want to think about the consequences of having no place to store oil. You can't just turn off all oil wells.
So, what about the $7,000,000 that you borrowed from the bank to drill the first well that is now non-commercial?
why is it “a problem”?
Don’t be shocked if Trump announces an oil tariff in today’s presser.
CL just fell below $0
It is pretty much full already. Last I heard, it was down 100,000,000 barrels. That is about one week of current US production.
That means a lot of banks will be going under.
Check back in a couple of months. Make no mistake. This virus is the mother of all black swans.
This economic suicide is self inflicted. Hardly anybody knows someone who died of the Chicom virus. Don’t you find that a bit odd for a “Pandemic?” Can the same be said of the 1918 flu? Of course not.
it is self inflicted.....but its been going on for years, well before the Wu-flu
“why is it “a problem”?
Surely you jest.
Being self-sufficient in oil is a strategic imperative. AT LEAST as important as making our own fighters and submarines.
If you are not jesting, go away.
This economic suicide is self inflicted.
This is just show casing the insanity of the paper market.
https://oilprice.com/oil-price-charts
No other oil category is down 96%. Why would West Texas Intermediate be down 96% but Brent down only 5%? And Louisiana up $5?
That won't fully solve the problem. It is a matter of consumption to start emptying storage. The economy needs to be open yesterday.
This is NOT hard. What the feds need to do is set a “Floor Price”, maybe $50/barrel, and tax all imported oil at whatever rate it takes to bring the cost up to $50/barrel. So if imported oil is $10/barrel, then the tax would be $40. If imported is $45, then the tax is $5.
Domestic producers would not pay any of this tax.
Doing so will keep the oil companies solvent and also help give the government a few bucks to spread around.
Banks going under is fine, so long as they are in Oklahoma, Texas, or Kansas. BUT, if the FDIC standards were rigorously enforced against California banks leveraged full of sorry home loans, that would be “unfair!” THEY deserve leniency and bailouts. /s
BREAKING: Crude oil now $0.01 per barrel— Breaking911 (@Breaking911) April 20, 2020
“F’n Shummer pulled money for the last COVID-19 bill to fill the strategic national reserve.”
I did not know that, I thought the President could do that without Congress. That was very stupid of evil of Schumer.
Too big to fail. Round 3.5 covid funding to bail out the banks: $50T. We can just print more.
Yep. The reason the markets have not crashed completely is that they know the bailouts will be coming fast and furious in an election year.
WTI is land locked - pipe lines deliver to tank farms. The storage is nearly full. WTI is now negative $7.
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