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The New Coffee Room

  1. TNCR
  2. General Discussion
  3. Oil Futures

Oil Futures

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  • ImprovisoI Offline
    ImprovisoI Offline
    Improviso
    wrote on last edited by
    #19

    It just hit 10 cents a barrel.

    We have the freedom to choose our actions, but we do not get to choose our consequences.
    Yes, there are two paths you can go by, but in the long run, there's still time to change the road you're on.

    1 Reply Last reply
    • ImprovisoI Offline
      ImprovisoI Offline
      Improviso
      wrote on last edited by
      #20

      Negative : -1.43 a barrel. Unbelievable.

      We have the freedom to choose our actions, but we do not get to choose our consequences.
      Yes, there are two paths you can go by, but in the long run, there's still time to change the road you're on.

      1 Reply Last reply
      • ImprovisoI Offline
        ImprovisoI Offline
        Improviso
        wrote on last edited by
        #21

        At this rate, they are going to pay us to fill up our cars. πŸ‘

        We have the freedom to choose our actions, but we do not get to choose our consequences.
        Yes, there are two paths you can go by, but in the long run, there's still time to change the road you're on.

        1 Reply Last reply
        • 89th8 Offline
          89th8 Offline
          89th
          wrote on last edited by
          #22

          Sooooo........should I buy Halliburton?

          Is this just reflecting the surplus in supply, minimal demand, and no place to store the actual dinosaur juice?

          89th8 1 Reply Last reply
          • jon-nycJ jon-nyc

            May futures expire tomorrow. If you're long you gotta accept delivery. There's no where to store it. In theory it could go negative.

            jon-nycJ Online
            jon-nycJ Online
            jon-nyc
            wrote on last edited by jon-nyc
            #23

            @jon-nyc said in Oil Futures:

            May futures expire tomorrow. If you're long you gotta accept delivery. There's no where to store it. In theory it could go negative.

            And it did!

            https://www.barrons.com/articles/oil-futures-fall-below-1-for-first-time-ever-51587406408

            Only non-witches get due process.

            • Cotton Mather, Salem Massachusetts, 1692
            ImprovisoI L 2 Replies Last reply
            • 89th8 89th

              I don't really understand oil futures. Maybe I'm the only one.

              X Offline
              X Offline
              xenon
              wrote on last edited by
              #24

              @89th said in Oil Futures:

              I don't really understand oil futures. Maybe I'm the only one.

              There's a lot of implications and math that falls out from the basic structure. But the basic structure is quite simple:

              The spot price is the price of a commodity today.

              The futures price is the price of a commodity at a specific point in the future.

              The futures price includes the cost of carrying and storing the commodity until the "delivery date".

              Those two prices converge as the future date gets closer to today (spot price)

              In this case, storage in May is expected to be full - which significantly increases storage and carrying costs. This makes the commodity itself quite unattractive and is the reason why we're seeing next to zero or even negative prices.

              At this point full storage isn't priced into later months (July, August, etc.) - so those prices are still positive.

              1 Reply Last reply
              • jon-nycJ jon-nyc

                @jon-nyc said in Oil Futures:

                May futures expire tomorrow. If you're long you gotta accept delivery. There's no where to store it. In theory it could go negative.

                And it did!

                https://www.barrons.com/articles/oil-futures-fall-below-1-for-first-time-ever-51587406408

                ImprovisoI Offline
                ImprovisoI Offline
                Improviso
                wrote on last edited by
                #25

                @jon-nyc At this rate, I could store 310 barrels in my pool and they would pay me $9500 to do it. πŸ€”

                We have the freedom to choose our actions, but we do not get to choose our consequences.
                Yes, there are two paths you can go by, but in the long run, there's still time to change the road you're on.

                1 Reply Last reply
                • jon-nycJ jon-nyc

                  @jon-nyc said in Oil Futures:

                  May futures expire tomorrow. If you're long you gotta accept delivery. There's no where to store it. In theory it could go negative.

                  And it did!

                  https://www.barrons.com/articles/oil-futures-fall-below-1-for-first-time-ever-51587406408

                  L Offline
                  L Offline
                  Loki
                  wrote on last edited by
                  #26

                  @jon-nyc said in Oil Futures:

                  @jon-nyc said in Oil Futures:

                  May futures expire tomorrow. If you're long you gotta accept delivery. There's no where to store it. In theory it could go negative.

                  And it did!

                  https://www.barrons.com/articles/oil-futures-fall-below-1-for-first-time-ever-51587406408

                  Hey, I asked earlier how much could we charge to store it.

                  1 Reply Last reply
                  • JollyJ Jolly

                    @Doctor-Phibes said in Oil Futures:

                    Oh, that's really not good for anybody working in the petrochem industry.

                    Hurts us, fer shur.

                    Doctor PhibesD Online
                    Doctor PhibesD Online
                    Doctor Phibes
                    wrote on last edited by
                    #27

                    @Jolly said in Oil Futures:

                    @Doctor-Phibes said in Oil Futures:

                    Oh, that's really not good for anybody working in the petrochem industry.

                    Hurts us, fer shur.

                    Hurts here, too. At least half our business is with people servicing the oil industry.

                    I was only joking

                    1 Reply Last reply
                    • JollyJ Jolly

                      @Doctor-Phibes said in Oil Futures:

                      Oh, that's really not good for anybody working in the petrochem industry.

                      Hurts us, fer shur.

                      AxtremusA Offline
                      AxtremusA Offline
                      Axtremus
                      wrote on last edited by
                      #28

                      @Jolly said in Oil Futures:

                      Hurts us, fer shur.

                      Will hurt Russia even more, and just about any regime whose oil export represents a big fraction of national income.

                      1 Reply Last reply
                      • MikM Away
                        MikM Away
                        Mik
                        wrote on last edited by
                        #29

                        Those two picked a bad time to make a glut, that’s for sure.

                        β€œI am fond of pigs. Dogs look up to us. Cats look down on us. Pigs treat us as equals.” ~Winston S. Churchill

                        1 Reply Last reply
                        • CopperC Offline
                          CopperC Offline
                          Copper
                          wrote on last edited by
                          #30

                          So anyone with a significant interest in oil will certainly become an ally of the ReOpen people.

                          Lots of new alliances will be made.

                          1 Reply Last reply
                          • jon-nycJ Online
                            jon-nycJ Online
                            jon-nyc
                            wrote on last edited by
                            #31

                            I wonder how many systems are breaking right now on that negative number.

                            Only non-witches get due process.

                            • Cotton Mather, Salem Massachusetts, 1692
                            George KG 1 Reply Last reply
                            • jon-nycJ jon-nyc

                              I wonder how many systems are breaking right now on that negative number.

                              George KG Offline
                              George KG Offline
                              George K
                              wrote on last edited by
                              #32

                              @jon-nyc said in Oil Futures:

                              I wonder how many systems are breaking right now on that negative number.

                              ::insert "You divided by zero" meme here::

                              "Now look here, you Baltic gas passer... " - Mik, 6/14/08

                              The saying, "Lite is just one damn thing after another," is a gross understatement. The damn things overlap.

                              1 Reply Last reply
                              • jon-nycJ Online
                                jon-nycJ Online
                                jon-nyc
                                wrote on last edited by
                                #33

                                Seen on twitter

                                BREAKING - DUE TO THE RAPID CAPITULATION IN MAY 2020 OIL CONTRACT, OIL WILL NO LONGER BE QUOTED IN VOLUMES OF EXPENSIVE STEEL BARRELS BUT IN 42 GALLON GARBAGE BAGS

                                Only non-witches get due process.

                                • Cotton Mather, Salem Massachusetts, 1692
                                1 Reply Last reply
                                • L Offline
                                  L Offline
                                  Loki
                                  wrote on last edited by
                                  #34

                                  Of all ironies as the last cruise ship gets a port, supertankers take their place floating aimlessly in the ocean.

                                  Who could have written that script 3 months ago?

                                  1 Reply Last reply
                                  • 89th8 Offline
                                    89th8 Offline
                                    89th
                                    wrote on last edited by
                                    #35

                                    USO (an oil ETF) is down 33% today, as of right now, at least.

                                    1 Reply Last reply
                                    • jon-nycJ Online
                                      jon-nycJ Online
                                      jon-nyc
                                      wrote on last edited by
                                      #36

                                      932B8FFE-5E8A-4B1A-9EB0-AF4621F557E1.jpeg

                                      Only non-witches get due process.

                                      • Cotton Mather, Salem Massachusetts, 1692
                                      1 Reply Last reply
                                      • 89th8 Offline
                                        89th8 Offline
                                        89th
                                        wrote on last edited by
                                        #37

                                        Haha that is so good

                                        1 Reply Last reply
                                        • 89th8 89th

                                          Sooooo........should I buy Halliburton?

                                          Is this just reflecting the surplus in supply, minimal demand, and no place to store the actual dinosaur juice?

                                          89th8 Offline
                                          89th8 Offline
                                          89th
                                          wrote on last edited by
                                          #38

                                          @89th said in Oil Futures:

                                          Sooooo........should I buy Halliburton?

                                          I should've. It's up 25% since I asked that question. πŸ™‚

                                          1 Reply Last reply
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