Posted on 03/18/2020 12:12:24 PM PDT by 11th_VA
Plunging oil prices could be headed a lot lower possibly below zero, according to one Wall Street analyst.
West Texas Intermediate crude oil, the U.S. benchmark, fell by more than 10 percent Wednesday to near $24 a barrel, a level last seen in April 2002.
Oil prices can go negative, wrote Paul Sankey, managing director at Mizuho Securities.
If that weren't enough, Saudi Arabia recently slashed oil prices and raised output after Russia refused to join OPEC in deepening production cuts.
Oil is a 100 million barrel-per-day market, but Sankey says its possible that the economic fallout from the pandemic could zap demand, creating a 20 million barrel-per-day surplus.
He says the physical reality of the market is that oil is pumped out of the ground and has to be consumed or stored. When the cost of storage goes high enough -- or space runs out -- companies might pay customers to take it...
(Excerpt) Read more at google.com ...
Naw. The companies have their break even point, and will curtail production.
I may need to buy a few 5 gallon buckets. I wonder what the price of buckets is now??
yup
gunna have a lotta oil tankers sitting in the water doin nuttin...
It gets better. With the SPR getting filled with West Texas crude the Gulf Coast refineries could take this opportunity to retool away from that Saudi garbage.
It’s already $1.39 a gal some places in MI!
Freepers do know various crude prices differ markedly
Like over 5-600 percent ...spread
Saudi Basket
Urals
WTI
Brent
Mars US
Cheapest is Wyoming General Sour at 10.00 bucks a barrel
Most Expensive is Girassol in the Atlantic off the coast of Angola ...65.40
Girassol has best octane results mid range fuels of any crude in the cracking tower
Trump is filling the reserves.
With negative interest rates looming, you don't want a positive balance on your credit card :-)
DOUBLE or TRIPLE our Strategic Reserves.
Shup. Nobody wants to hear that.
Woohoo!
“Ill take a billion barrels. No make that 10 billion. Can I put that on my VISA?”
Below zero - how absurd.
Aww Hell Yeah!
When they pay me to buy it, I might get some. Let’s see...where did I leave my bicycle tire pump. I’m getting closer to my home...
https://www.youtube.com/watch?v=bv7XR_cJU9Y
Funky
$1.73 in San Antonio.
Shup.
$1.88 in Pratt, KS.
Those wells have valves on them. Turn it one way its open. Turn it the other way it is closed
Who is going to keep pumping it?
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