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 it’s 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 ...
I think I’ll cancel my order on that brand spanking new Tesla then.
Partly but being human we just don’t know what will happen. Pride makes us think we do.
I shook my head when the concept of negative interest was introduced where they charge you for holding your money.
Certainly not saying this is the case, (and even if it goes this way, probably not there for a bit), but the theory is on the “radar” of several OS analyst at the moment. What is the possibility, what is happening now, leads to Russia attempting to either temporarily end, or take control of the Saud/UAE/Israel energy terminus and export infrastructure and near term planning as there is a Saudi/UAE alternative plan in the making, to build EU energy pipeline terminus in Israel...?
The biggest reason Gorbachev gave in a 79’ politburo speech, for radically redesigning global Soviet communist appearances and objectives, was the fear of a “Reagan” type presidency, making it impossible to reschedule over $4 Trillion of secretly debt to western central banks/governments. The fears were born out, and this was one of the most decisive keys to Reagan successfully “breaking their back”.
Gorby and a segment within the Politburo were correct, and did quietly begin drawing the “blueprints” for the Russian Federation, and the Russian Headquarted CIS economic, and Russian led joint battlespace environment.
After the necessary big “redesign”, one of the decisive things Clinton worked to make happen, was the forgiveness of between $4.4-$4.7 Trillion dollars of combined Soviet debt to western central banks, which had been quietly held by Moscow. But the Politburo and several joint staff members, which were forced to infil the Russian Parliament (White House), were of course dangerously riled up with the name changes, optical transition, and formal soft reorganization, and forced reallocation of funds from conventional to strategic
and covert assets.
It was a very hard and hated reorganization. There is of course far more detail, but Gorbachev, Yeltsin, and Putin have each promised this would never happen again, period.
With the current energy segment getting hammered, massive Russian military economy expenditures and regional expansions throughout the ME and Mediterranean, and debts mounting again, could Putin (who lived through the last painful collapse, now attempt to “speed up the strategic “timetable”, and get out in front of this very dangerous economic threat.. or get rid of the threat altogether?
Keep in mind, the long range strategic objective jas been to control and use energy to the EU, and then to decisively determine EU economic and foreign trade policy, and determine EU military policy — e.g. Break up NATO, rebuild “Warsaw type structure”, only bigger, and I”ll stop there for now.
Just throwing it out there...
So the gas stations pay us now??
Price today in Houston, TX is $1.70 a gallon.
Well, at one time, some said it took oil at $50/bbl for Russia to make money. Some have said $30/bbl.
Now, MbS of Saudi Arabia is taking on Iran - hitting them where it hurts.
Yes, IMHO, this could set up Ezekiel 38 quite easily. A hook in the jaw of Magog. Iran, finally tired of the “little Satan” Israel takes their final shot. (not knowing what’s going to happen to them).
And then Sheba and Dedan (Saudi Arabia) protest the invasion attempt.
Yes, we’re pretty much on the same page. ;)
Look up. Our redemption draweth nigh.
Buy Buy Buy for our reserves. This opportunity may never come again.
__________________________________________________________
Trump mentioned that at a presser saying “We’re filling up the strategic oil reserves and we’re doing it at a very good price, a VERY good price”.
Peak Oil is real.
$2.19 in southern MD.
Will her head super nova, collapse back to flat earther, be both, or somehow possibly pollute the galaxy with hot CO2 gas?
Costco is down to 2.85 in my area No. Calif.
I filled up yesterday at 2.87
Should have just gotten 5 gals, and waited for it to be minus a dollar or so to fill up...heh
Before buying gas in any area, first check Gasbuddy for lowest prices.
https://www.gasbuddy.com/GasPrices/California
Oh and this is still California if we fight for it.
You way of spelling it looks like giving up.
The commies are trying to take CA from us, don’t give in to them.
Trumps new energy policy — Every American household has a 55,000 gallon fuel tank reserve!
That should cause UN IPCC to all jump off the UN building at the same time, or heads to collectively super nova!
$1.69 in Memphis where I live. The Exxon down the street was $2.19. Screw that!
The price of unleaded at the Love's in Williams has held steady at 2.99 for at least three months.
We can only hope
bump for laughter... er I mean latter.
When the "space runs out" some people might be smart enough to store it in the "space" that it resides now. That is until the price gets above $0. [face palm] We may not be at the bottom, but I'm pretty sure we are at peak stupid.
Dollar seventy two in central rural Missouri.
Already filled all my vehicles, cans and two 55 gal drums. Should have I waited???
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