I called this a while back and had quite a bit of pushback. I actually think we may see $8-9/BBL on the commodity markets as the bottom. Nowhere to store it. Local prices into pipelines are less than $2 in Wyoming today. Not good for the broader economy being this low.
WTI $10 a barrel, how low can it go?
- Thread starter sloinker
- Start date
Could be going a lot lower than that. With the current world oversupply, WTI may even go negative.
https://business.financialpost.com/...-with-storage-filling-as-demand-shrivels
https://business.financialpost.com/...-with-storage-filling-as-demand-shrivels
Expect a crazy amount of layoffs in this industry.
Low gas prices are good for consumers, very bad if you're employed in this industry.
Low gas prices are good for consumers, very bad if you're employed in this industry.
Originally Posted by Mr Nice
Expect a crazy amount of layoffs in this industry.
Low gas prices are good for consumers, very bad if you're employed in this industry.
Will be very good for airline stocks.
Expect a crazy amount of layoffs in this industry.
Low gas prices are good for consumers, very bad if you're employed in this industry.
Will be very good for airline stocks.
I just saw that. This is absolutely crazy.
I was reading about how gas margins were near-record high (I think around 70 cents per gallon), back when oil was in the $20 range the last couple weeks. (Many stations were still selling for over a dollar a gallon at that point, which was proportional to a more expensive oil price.)
It'll be very interesting to see if this drops pump prices significantly. Our state gas tax is 28ish cents, plus the federal tax of 18 cents, so the total tax is about 46-47 cents per gallon. It would seem that the pump price would be unlikely to drop much below $0.75 or so, but who knows?
I was reading about how gas margins were near-record high (I think around 70 cents per gallon), back when oil was in the $20 range the last couple weeks. (Many stations were still selling for over a dollar a gallon at that point, which was proportional to a more expensive oil price.)
It'll be very interesting to see if this drops pump prices significantly. Our state gas tax is 28ish cents, plus the federal tax of 18 cents, so the total tax is about 46-47 cents per gallon. It would seem that the pump price would be unlikely to drop much below $0.75 or so, but who knows?
The traders on the Chicago mercantile establish the price. If someone wants to take the risk to make it go to zero. It will go to zero. Traders got to trade.
Watch states raise gas tax while the glut is so much. People aren t driving revenues go down,government budgets never do. When people go back to work prices go back up. Anyone contract buying ,nows time to get in. By september economy will come back.
Originally Posted by Mr Nice
Expect a crazy amount of layoffs in this industry.
Low gas prices are good for consumers, very bad if you're employed in this industry.
They've made BILLIONS now for years off us with inflated fuel prices, you mean to tell me they can't support a few months of low volume/low prices?? Total BS IMO....
Diesel prices are still normal here in Central FL, such a joke. Gas is over a $1 cheaper per gallon. Why? because they know all the trucks are still running the roads to keep up with S&D so lets keep sticking it to them! I have no sympathy for the oil/fuel industry, sorry not sorry.
Expect a crazy amount of layoffs in this industry.
Low gas prices are good for consumers, very bad if you're employed in this industry.
They've made BILLIONS now for years off us with inflated fuel prices, you mean to tell me they can't support a few months of low volume/low prices?? Total BS IMO....
Diesel prices are still normal here in Central FL, such a joke. Gas is over a $1 cheaper per gallon. Why? because they know all the trucks are still running the roads to keep up with S&D so lets keep sticking it to them! I have no sympathy for the oil/fuel industry, sorry not sorry.
When you say Oil industry Please understand that a whole lot of US on the ground in the Permian Basin are also getting hurt. The fuels they delivered are part of the boom we've had in recent past. I'm not gonna complain about prices if it is going to my neighbor. If he has that money he'll be buying something I am involved in producing.
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Originally Posted by racin4ds
Originally Posted by Mr Nice
Expect a crazy amount of layoffs in this industry.
Low gas prices are good for consumers, very bad if you're employed in this industry.
They've made BILLIONS now for years off us with inflated fuel prices, you mean to tell me they can't support a few months of low volume/low prices?? Total BS IMO....
Diesel prices are still normal here in Central FL, such a joke. Gas is over a $1 cheaper per gallon. Why? because they know all the trucks are still running the roads to keep up with S&D so lets keep sticking it to them! I have no sympathy for the oil/fuel industry, sorry not sorry.
Diesel is high because the trucks are still running, and the US supply of diesel is a percentage of gasoline production and can't be changed.
Originally Posted by Mr Nice
Expect a crazy amount of layoffs in this industry.
Low gas prices are good for consumers, very bad if you're employed in this industry.
They've made BILLIONS now for years off us with inflated fuel prices, you mean to tell me they can't support a few months of low volume/low prices?? Total BS IMO....
Diesel prices are still normal here in Central FL, such a joke. Gas is over a $1 cheaper per gallon. Why? because they know all the trucks are still running the roads to keep up with S&D so lets keep sticking it to them! I have no sympathy for the oil/fuel industry, sorry not sorry.
Diesel is high because the trucks are still running, and the US supply of diesel is a percentage of gasoline production and can't be changed.
When you see some of the oil companies (the smaller one, not the big ones like Chevron or ExxonMobile) go out of businesses, then you know the bottom is near and will go back up soon.
This bottom is the big oil wanting to drive the little guys out of businesses, then acquire them to tighten the supplies.
This bottom is the big oil wanting to drive the little guys out of businesses, then acquire them to tighten the supplies.
Originally Posted by PandaBear
When you see some of the oil companies (the smaller one, not the big ones like Chevron or ExxonMobile) go out of businesses, then you know the bottom is near and will go back up soon.
This bottom is the big oil wanting to drive the little guys out of businesses, then acquire them to tighten the supplies.
None of this makes any sense whatsoever.
When you see some of the oil companies (the smaller one, not the big ones like Chevron or ExxonMobile) go out of businesses, then you know the bottom is near and will go back up soon.
This bottom is the big oil wanting to drive the little guys out of businesses, then acquire them to tighten the supplies.
None of this makes any sense whatsoever.
Oil has always been supply and demand. And bust or boom in the oil areas in Texas, etc. Now a lot less people are driving. Less airplanes flying. Probably less container ships moving products around. As people's oil fired heating systems get old they are not replacing them with another oil fired unit. Its also not summer yet so less recreational use and OPE use of gasoline.
Add all those combined with OPEC's price fixing and Russia (communist) price setting and its not an easy problem to solve. Russia's economy is based upon selling products extracted from the ground.
At this point we should not be too worried about cheap oil. We have much bigger fish to fry.
Add all those combined with OPEC's price fixing and Russia (communist) price setting and its not an easy problem to solve. Russia's economy is based upon selling products extracted from the ground.
At this point we should not be too worried about cheap oil. We have much bigger fish to fry.
Oil has always been supply and demand. And bust or boom in the oil areas in Texas, etc. Now a lot less people are driving. Less airplanes flying. Probably less container ships moving products around. As people's oil fired heating systems get old they are not replacing them with another oil fired unit. Its also not summer yet so less recreational use and OPE use of gasoline.
Add all those combined with OPEC's price fixing and Russia (communist) price setting and its not an easy problem to solve. Russia's economy is based upon selling products extracted from the ground.
At this point we should not be too worried about cheap oil. We have much bigger fish to fry.
Add all those combined with OPEC's price fixing and Russia (communist) price setting and its not an easy problem to solve. Russia's economy is based upon selling products extracted from the ground.
At this point we should not be too worried about cheap oil. We have much bigger fish to fry.
As of 2:30 est time , it hit $0.05 bbl. Gonna fill up my swimming pool with oil.,,,,,
Originally Posted by wog
Watch states raise gas tax while the glut is so much. People aren t driving revenues go down,government budgets never do. When people go back to work prices go back up. Anyone contract buying ,nows time to get in. By september economy will come back.
That's just what they will do, don't expect it to ever go away later.
Watch states raise gas tax while the glut is so much. People aren t driving revenues go down,government budgets never do. When people go back to work prices go back up. Anyone contract buying ,nows time to get in. By september economy will come back.
That's just what they will do, don't expect it to ever go away later.
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-$35 apparently, US should refill it's reserve
Originally Posted by Trav
Originally Posted by wog
Watch states raise gas tax while the glut is so much. People aren t driving revenues go down,government budgets never do. When people go back to work prices go back up. Anyone contract buying ,nows time to get in. By september economy will come back.
That's just what they will to do, don't expect it to ever go away later. The Massholes have a gem of a leader.
Our state is trying to double down on fee increases and won't touch gas tax, so nope not true everywhere
Originally Posted by wog
Watch states raise gas tax while the glut is so much. People aren t driving revenues go down,government budgets never do. When people go back to work prices go back up. Anyone contract buying ,nows time to get in. By september economy will come back.
That's just what they will to do, don't expect it to ever go away later. The Massholes have a gem of a leader.
Our state is trying to double down on fee increases and won't touch gas tax, so nope not true everywhere
