Free Oil

Joined
Jan 8, 2006
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Location
Michigan
I know I should have posted this in the deals forums. Get the oil you want boyz et girlz....oil prices dropped below ZERO in trading today. It is like wallys will pay ya to buy their oil, man can only dream ;-)
 
Yes, right now it is about -18 and change per bbl...
No surprise nobody is going anywhere except to the grocery store and maybe work....

Not to mention that the oil companies have been storing oil in ship tankers by the thousands for years now.

This is the first collapse stawks are next. I say DOW will be at 5000 in about 5 months or less.
 
You do realize this is for oil futures for May which expire tomorrow right? This is just an extreme version of contango.
 
Originally Posted by Wolf359
You do realize this is for oil futures for May which expire tomorrow right? This is just an extreme version of contango.

Correct, you need to understand the negative price is only for the May futures contract that expires tomorrow.
 
Minimum order may be for 1000 barrels or more, for delivery means it's being delivered. Not many folks have holding tanks or infrastructure to pick it up at the pipeline feed and transport it to their 50,000 gallon tank. If you do, by all means have someone pay you $18,000 or more for the convenience of offloading it today.
 
Originally Posted by sloinker
Minimum order may be for 1000 barrels or more, for delivery means it's being delivered. Not many folks have holding tanks or infrastructure to pick it up at the pipeline feed and transport it to their 50,000 gallon tank. If you do, by all means have someone pay you $18,000 or more for the convenience of offloading it today.


Yeah, it's 1000 barrels per contract so 42,000 gallons of oil. So it settled at negative $37.63 so you'd make $37,630 if you had storage. This was a one day sale on the May contract as the next contract, the June one is still around $20.

https://www.marketwatch.com/story/u...ading-at-negative-10-a-barrel-2020-04-20

https://www.thebalance.com/trading-crude-oil-futures-809351
 
Originally Posted by Wolf359
You do realize this is for oil futures for May which expire tomorrow right? This is just an extreme version of contango.



Things is demand is not going up between now and next month. So we might see this all over again next month, or somehow worse.
 
Originally Posted by Jimzz
Originally Posted by Wolf359
You do realize this is for oil futures for May which expire tomorrow right? This is just an extreme version of contango.



Things is demand is not going up between now and next month. So we might see this all over again next month, or somehow worse.


Yeah, that would all be speculation. The supply cut wasn't big enough, maybe about 10% and demand is down 30-35%. But there's a whole month for either supply to be cut again or for demand to pick up if some places start to reopen. That demand drop is worldwide.
 
Just in to post a screenshot:

[Linked Image]
 
And at these prices American oil companies are out of business

Enjoy your cheap oil / gas prices
 
I'm taking advantage of cheap gas to search left over straggler clearance oils at Autozone and Tractor supply co
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As low as $1.05 a gallon here in North Texas region
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YEEEEEEE HAWWWWWWWWWW


Dave
 
Apparently this is due to the nature of the contracts. Today is the last day to trade this particular contract AND one must take physical delivery.

Brent crude contracts go on for another 9 days and no delivery is required.

This is more about the nature of the contracts than it is market conditions.

Many don't want to be looking for a place to put the oil when the music stops.
 
I would hope production drops to better fit demand by then.

Originally Posted by Jimzz
Originally Posted by Wolf359
You do realize this is for oil futures for May which expire tomorrow right? This is just an extreme version of contango.



Things is demand is not going up between now and next month. So we might see this all over again next month, or somehow worse.
 
Cuz storage is hard to come by, this is being done by futures traders, some buy bet big and they are taking him to the cleaners, oil guys have been buying cheap oil and keeping them in tankers afloat in the sea for years now.

Where do I go to get my oil and get paid for it? ;-)
 
Originally Posted by yagciogullari
now shows $15.11
confused2.gif



They are futures contracts. That was the May contract they were talking about it. You're probably looking at the June contract. Different contract, different prices, same as stocks. They're actually options contracts so if you hold them at expiration, you're going to get the oil and you need a place to store them. If you don't have the storage for the oil, you have to get rid of the contract even if you have to pay someone to buy it. Minimum contract is 1000 barrels so you've got to have a place to store at least 42,000 gallons of oil.
 
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