4/22/2020 12:56:32 PM · by ProtectOurFreedom · 97 replies
Star Tribune (Minneapolis, MN) ^ | April 21, 2020 | Adam Belz
Posted on 04/23/2020 3:02:02 PM PDT by al baby
Thought you might like this explanation of negative oil prices... The below analogy of the oil crash put on simple terms for those of you not understanding negative oil prices Why WTI traded at -$40... Imagine the following...you pay $500 today and commit to receiving an escort at your house in fifteen days, because your girlfriend will then be traveling... Unfortunately, quarantine came and your girlfriend will be home for the next 3 months... Like all girlfriends from all over the world... You do not want this woman to show up at your house at all and try to pass this future contract to someone... Only you cannot sell this commitment because nobody can receive the escort at home anymore. Everyone is with their respective girlfriends. To make matters worse, not even the pimp has more room to receive girls because his house is crowded with other call girls. So you must pay someone to take your $500 escort off your hands the day before she shows up at your house... I did not write this but I did laugh out loud when I read it.
So you’re saying I can get an escort to come to my house if I buy oil futures at the right time?
“take your $500 escort off your hands
I really wasn’t thinking about my hands.
Easy - pump it back INTO the well....
What’s that? Can’t unbreak an egg?
Escort or girlfriend.
Girlfriend or escort.
Either way - you are gonna get screwed. Same as with negative oil pricing.
Good analogy al. I so get it.
Especially where that ARE no eggs.
Hahahaha...that’s pretty good...:)
If you prepaid the hooker's pimp the $500, just refuse delivery and everyone is happy.No refunds.
Now if you had made a contract with the pimp for $500 worth of service being COD in 3 months, then the pimp wants his money on that date.
You would then give your buddy $540 with $500 COD to be paid to the pimp on the contract date and your buddy gets laid with $40 more in his pocket.
Girlfriend or escort."
Why not girlfriend AND escort? ;)
Or you will be, once she gets done with you...
You can get many escorts of the best quality if you trade oil futures.
Unless of course your girlfriend is into that kind of thing. Just sayin’...
$1.59.9 at Wal Mart here. Cannot go onto the Fort McClellan to hit the pumps there. It is normally several cents less. Probably like $1.45-1.48 if we could go out there. They closed us off, military retirees, from going to the damned gas pumps. All we do is drive on, pump gas and leave and WE ARE a potential problem for carrying the virus onto the post, which doesn’t have very many people there as they are not calling up people right now. When they do, they have companies of 100 guys and gals from all over their areas coming together and THAT does not cause a problem???? Go figure. I have heard that at some Army bases around the country that retirees cannot come on the base to go to the commissaries, or PX’s but active duty can. That ain’t right. The commissary is one of the largest benefits that retirees have.
The thing about futures is that if the contract expires and you havent unloaded to someone else you are expected to take delivery. You just cant tell the oil to stay home.
An escort, already paid, would be happy to not arrive at your doorstep. But yeah, its a good analogy!
That price seems high anyway.
It’s $1.22 here in Indiana and we have a pretty high gas tax.
Bump!
Yeah. I don’t understand it either. In other parts of Alabama it is way down like yours. I guess some counties have, and cities, want their pennies on the pound or gallon!!
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