Posted on 04/23/2020 5:21:58 AM PDT by Kaslin
What’s the inverse of “Let them freeze in the dark”?
Give it a year. When we start seeing the consequences of the fallout from this whole mess, including governments just “printing” and handing out trillions and trillions of taxpayer money to keep things from utter collapse, oil will be hitting $100 a barrel again. But that is because a big mack will be $50 and the dow will be at $100,000.
The future price inflation baked into this whole thing is about as obvious as anything happening in real time right now.
Except for any existing contracts and of course have to be honored I surely hope we are not importing any oil at this point or natural gas.
$100,000 = 100,000 points.
A Saudi financier was once asked, “what’s your biggest investment?”
At the time he said, “the oil we haven’t pumped out of the ground, yet.”
And now?
TARIFF OIL IMPORTS NOW
Inflation is a great way for governments to get out of debt. Pay tomorrow’s dollars for yesterday’s spending.
If I was the cynical type, I’d say they were doing it on purpose.
We are going to be Argentina VERY soon.
Give it a year. When we start seeing the consequences of the fallout from this whole mess, including governments just printing and handing out trillions and trillions of taxpayer money to keep things from utter collapse, oil will be hitting $100 a barrel again. But that is because a big mack will be $50 and the dow will be at $100,000.
The future price inflation baked into this whole thing is about as obvious as anything happening in real time right now.
...
That doesn’t seem to be very Sound Logic. I’m not sure if you’re trying to be funny or not.
A Democrat/Socialists wet dream is underway right now. The virus is being used to destroy the worlds economy and put everyone at the trough of government. The future looks bleak from my seat.
Inflation is a great way for governments to get out of debt. Pay tomorrows dollars for yesterdays spending.
If I was the cynical type, Id say they were doing it on purpose.
Imagine this being our way to “justify” it without China being able to call foul.
i.e. you may be exactly right.
Give it a year. When we start seeing the consequences of the fallout from this whole mess, including governments just printing and handing out trillions and trillions of taxpayer money to keep things from utter collapse, oil will be hitting $100 a barrel again. But that is because a big mack will be $50 and the dow will be at $100,000.
The future price inflation baked into this whole thing is about as obvious as anything happening in real time right now.
Im afraid youre right. Nobody knows what the long term effects of are going to be, but its not going to be good. I thought we might walk away from it till the price of oil collapsed.
In the mean time we will get the Vat Tax, while there is still any value in the dollars we might have saved. It will be “needed” to shore this up, before it collapses utterly.
I talked to a contractor that I used to know and he’s a stone cold liberal. We were talking about the oil crises and that he was glad that the oil companies were hurting. I had to remind him that a lot of oil workers were going to lose their jobs.I used to inspect concrete structures for oil infrastructure. The steel rebar and such. The oil workers are some of the hardest working men in the world. But my contractor friend is totally brainwashed and there’s no gittin through. Waste of time.
Home heating oil here in PA is around $1.60/gal.
I pay them, they don’t pay me to take it.
At the pump, they want $2/gal. Walmart is about 15 cents less.
It isn’t so “great”, right? You still end up as the government of Venezuela.
The Gubmint takes their cut. Otherwise it would basically be free.
“”” It was cheaper for producers to pay people to take it away than it was to store it themselves, as capacity had been reached. They were offering almost $40 per barrel to take the oil.”””
What Derek Hunter writes is hogwash.
What happened was a classic long squeeze (and that is a very, very rare occurrence)
There are two players in the Futures Markets. Longs and Shorts.
Those who are Long have bought a contract to take delivery in a certain month. Those who are short have sold a contract to make delivery in a certain month.
There were those people who play the futures market game who had bought a May 2020 crude oil futures contract with the expectation the price would go up and they could sell the contract before expiration of the contract for a profit.
Well, it did not work that way. Prices continued to drop and they held onto their long position until last notice day. At that point the short guys told the long guys: “Where do you want us to deliver your oil?”.
Well, the long guys operating out of their bedroom had no place to store the oil, so the long guys were forced to sell their contract at prices as low as -$37.00.
Bottom line: If a person does not know how the futures markets work, then they had better stay away. As they say in the trade: “Many clocks got cleaned”.
.
“Well, in the time of quarantines and stay at home orders, no one needs more gas right now, or oil for any of its other applications”
end the lockdowns everywhere.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.