Stocks Decline as Oil Prices Collapse to Record Lows

The Street ^ | 4/20/2020 | Joseph Woelfel

[tatown]

The emergency facing the country right now is economic and we absolutely need to restart the engines.

[Liberty Valance]

I just saw $1.28 brl - unprecedented

[RedStateRocker]

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.

[Ann Archy]

1.04 now.

[old curmudgeon]

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.

[wny]

plummeting demand. incredible over supply. plummeting prices.

the free market in action.

[PGR88]

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.

[rightwingcrazy]

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.

[old curmudgeon]

You really want a reply of the 1973 oil crisis?

Were you old enough to drive during that period?

[IllumiNaughtyByNature]

Aren’t we buying up US crude to replenish the Strat Reserve?

[Bob434]

We’re still $2.15- we just dropped a ‘whopping’ 3 cents today-

[ConservativeInPA]

It could go negative.

[old curmudgeon]

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.

[Ann Archy]

I’m looking at FOX Business Crude Oil....now $1.30

[Bob434]

[[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

[CardCarryingMember.VastRightWC]

Hopefully the Feds are taking advantage of these unheard of prices, to top off the Strategic Petroleum Reserve!

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 ---

SPR Current Status

[ConservativeInPA]

and some traders are

There's little storage remaining. The people making money are short on their contracts.

[ConservativeInPA]

Aren’t we buying up US crude to replenish the Strat Reserve?

F'n Chuckie Schumer pulled the funding on that.

[Bob434]

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-

[numberonepal]

I caught it at $1.04.