WTI May Futures Now Below $2 - Headed to below $0

CNBC CL May Contract ^ | April 20, 2020 | ConservativeInPA

[Mariner]

Hi Jane

The “anti trump” conspiracists never have an answer for why Trump is going along. And in many cases leading the efforts to “destroy Trump”.

It’s comical.

And it indicates the severity of logical disconnect they are experiencing.

They also argue he had nothing to do with the shutdown, it’s all the fault of the governors.

[wny]

I haven’t said a single word about submarines. Or the Chinese. You should learn to read.

[Jane Long]

Yeah....the Governors came up with the Three Phase Reopening America Plan.

🙄

Too funny. 🙃

[Mariner]

All I did was reasonably extend you logic from one strategic product to another.

Is it your contention the extension was unreasonable?

[Rusty0604]

We have refineries here, one owned by Saudi Arabia, that is capable of refining heavy crude oil, which we’re not buying from Venezuela now and is most likely what we’re importing from Saudi. Most of our crude oil from gulf states is very light crude, which we mostly export.

[Rusty0604]

I know the government has to pay for it, but I thought the President can draw down and replenish as we need it. We would be getting it at a very good price. The Democrats would oppose anything that would help the country.

[Truthoverpower]

I’m looking forward to cheap gasoline

[PAR35]

I think you have 12 months in Texas before a well becomes inactive.
https://texreg.sos.state.tx.us/public/readtac$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&p_tloc=&p_ploc=&pg=1&p_tac=&ti=16&pt=1&ch=3&rl=15

[Svartalfiar]

Oil companies can't make money at $2 a barrel? Then scale back or halt production. If enough of them do that, less supply.

Funny thing. When all three gas stations on your local corner do that, it's called collusion.

What I don't get is how the price varies so much for oil and some commodities. There's no reason any produced good should be swinging from $200/unit to $10/unit in a couple years, excepting major outside influences like war, or natural disasters in the only mine that produces it. It's not like the fuel shortages from long ago, there's a steady, reliable domestic source. How is it that hard to sell at low prices, without going under cost of production?

[Cronos]

You don’t have the same number of deaths as the 1919 Spanish flu because of the quarantine measures.

[masadaman]

Saudi tankers headed our way more than likely were ordered by a domestic refinery. Saudi and its sovereign controlled company own several here which until recently at least were held under the name Motiva. A few years ago, Motiva was the joint venture with Shell in Louisiana and Texas.