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The New Coffee Room

  1. TNCR
  2. General Discussion
  3. Oil Futures

Oil Futures

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  • M Offline
    M Offline
    Mik
    wrote on 20 Apr 2020, 15:07 last edited by
    #13

    Man, if you had a place to store it.....

    “I 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
    • J Offline
      J Offline
      jon-nyc
      wrote on 20 Apr 2020, 15:10 last edited by
      #14

      I'd love to know what's happening behind the scenes right now on the physical side.

      It's gotta be crazy.

      Only non-witches get due process.

      • Cotton Mather, Salem Massachusetts, 1692
      1 Reply Last reply
      • M Offline
        M Offline
        Mik
        wrote on 20 Apr 2020, 15:10 last edited by
        #15

        We have room for another 90 million barrels right now. We should get it.

        “I 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
        • 8 Offline
          8 Offline
          89th
          wrote on 20 Apr 2020, 16:40 last edited by
          #16

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

          X 1 Reply Last reply 20 Apr 2020, 18:53
          • 8 Offline
            8 Offline
            89th
            wrote on 20 Apr 2020, 16:42 last edited by
            #17

            I mean, I've google'd but still... what a different world to do business in.

            1 Reply Last reply
            • G Offline
              G Offline
              George K
              wrote on 20 Apr 2020, 17:58 last edited by
              #18

              One dollar.

              One.

              "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
              • I Offline
                I Offline
                Improviso
                wrote on 20 Apr 2020, 17:59 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
                • I Offline
                  I Offline
                  Improviso
                  wrote on 20 Apr 2020, 18:10 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
                  • I Offline
                    I Offline
                    Improviso
                    wrote on 20 Apr 2020, 18:12 last edited by
                    #21

                    At this rate, they are going to pay us to fill up our cars. 👍

                    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
                    • 8 Offline
                      8 Offline
                      89th
                      wrote on 20 Apr 2020, 18:44 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?

                      8 1 Reply Last reply 29 Apr 2020, 01:52
                      • J jon-nyc
                        20 Apr 2020, 14:27

                        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.

                        J Offline
                        J Offline
                        jon-nyc
                        wrote on 20 Apr 2020, 18:50 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
                        I L 2 Replies Last reply 20 Apr 2020, 19:05
                        • 8 89th
                          20 Apr 2020, 16:40

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

                          X Offline
                          X Offline
                          xenon
                          wrote on 20 Apr 2020, 18:53 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
                          • J jon-nyc
                            20 Apr 2020, 18:50

                            @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

                            I Offline
                            I Offline
                            Improviso
                            wrote on 20 Apr 2020, 19:05 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. 🤔

                            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
                            • J jon-nyc
                              20 Apr 2020, 18:50

                              @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 20 Apr 2020, 19:33 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
                              • J Jolly
                                20 Apr 2020, 14:16

                                @Doctor-Phibes said in Oil Futures:

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

                                Hurts us, fer shur.

                                D Offline
                                D Offline
                                Doctor Phibes
                                wrote on 20 Apr 2020, 20:32 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
                                • J Jolly
                                  20 Apr 2020, 14:16

                                  @Doctor-Phibes said in Oil Futures:

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

                                  Hurts us, fer shur.

                                  A Offline
                                  A Offline
                                  Axtremus
                                  wrote on 20 Apr 2020, 21:01 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
                                  • M Offline
                                    M Offline
                                    Mik
                                    wrote on 20 Apr 2020, 21:15 last edited by
                                    #29

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

                                    “I 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
                                    • C Offline
                                      C Offline
                                      Copper
                                      wrote on 20 Apr 2020, 22:47 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
                                      • J Offline
                                        J Offline
                                        jon-nyc
                                        wrote on 20 Apr 2020, 22:54 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
                                        G 1 Reply Last reply 20 Apr 2020, 23:00
                                        • J jon-nyc
                                          20 Apr 2020, 22:54

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

                                          G Offline
                                          G Offline
                                          George K
                                          wrote on 20 Apr 2020, 23:00 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.

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