Oil prices could fall below zero: Analyst

Fox Business ^ | March 18, 2020

[headstamp 2]

$2.09 in New Milford, CT yesterday

[Enlightened1]

If true, then the entire financial system is going down.

That is when we will be taken to war.

This is because when everything fails, people lose everything and that is when people lose it.

[crusty old prospector]

Quite possibly the dumbest thing I have ever heard. The operators would just shut the wells in and wait for better days. Now, gas production through the Waha Hub occasionally drops below zero but they are just giving the natural gas away to make the oil as they can’t just vent it. They are building more take-away capacity to remedy this but it is a few years away.

[SanchoP]

For now, President Trump has ordered the Department of Energy to take advantage of low prices by stepping into the market and buying oil for the Strategic Petroleum Reserve.
The reserve can build at 2 million barrels per day, meaning that it has four months until it’s at capacity, Sankey said.

Don't strike a match around Alvin(TX) for a while.

[Pilgrim's Progress]

Join us as we return to the days when gas was .32 cents a gallon and you could fill up your 57 Chevy Impala for under $5.00. Yes, we will go back to yesteryear.

[Reily]

How can someone write this drivel and not be fired!

[ding_dong_daddy_from_dumas]

[BBQToadRibs]

$1.99 in Minot ND

[Sicon]

I guess I need to get a few of those giant storage tanks. Not only will I get the oil for free, but the producers of said oil will apparently PAY ME to take it off their hands! It makes perfect sense! I’m glad I had this “analyst” to explain it to me.

[dfwgator]

Good. You have to take advantage of any opportunity this may bring.

[Capt. Tom]

And gas will still be $3.50 a gallon here in Commiefornia.

If gasoline cost 0.00 per gallon the Taxes would require you pay a dollar to 5 or 6 dollars a gallon depending where you are in the world. -Tom

[Pilgrim's Progress]

Actually, gas could be free. But I think tax on a gallon is still something like $2.50 if not more.

[Jim Robinson]

I read awhile back that Trump intends to have the govt buy as much of our oil production as he can at these low prices—to keep our oil industry from collapsing—and to replenish our federal reserves. I assume this means storing it underground.

[nickcarraway]

Yes, they will pay me to take gas?

[skimbell]

If demand drops below production, storage cost will rise. Oil producer might find themselves in a situation where it is less expensive to give the oil to processors than it is to store.

It's a lot of "maybe ifs", but the explanation is plausible.

I doubt that the situation would last for long though.

[Revel]

Yeah that might happen right before it shoots up to $500 because it is almost impossible to find.

Come on people- Use your heads. No company is going to produce oil at a loss. If they start losing money then they will just shut down operations even if they don’t go bankrupt.

[skimbell]

Cash is always a good thing.

[rdcbn]

This is insanity.

In a few weeks people are going to realize that the corona virus, while serious, is not the monster its being made out to be and its not going to be the new Black Death.

Reasonably confident it is not going to hit the US nearly as hard as the alarmists are trying to make out

[OrioleFan]

I wonder if my city will allow me to put in an underground storage tank? Hmmmmmmmmmmm...

[Red Badger]

Only if it’s a Diamond Plated one................