no one uses it!
Why oil is going up?
Andrew Russell
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Gabriel Collins
if Corona has 0.01 mortality rate why the lockdown ?
Isaiah Walker
There are only 21 million oil ever!
Lincoln Baker
oil halvening?
Anthony Brooks
Brrrr
Jaxson Martinez
I know this is a troll thread (is there a thread on Yas Forums that isn't?) but I'm going to explain the oil industry to you retards.
May contracts for West Texas Intermediate, the oil grade used by the US, plunged down to -$40 April 20.
So, for one day, sellers had to pay people $40 to agree take away a barrel's worth of crude next month.
April 20 was a bottleneck. Production is currently higher than pipeline shipping capacity. AKA producers have nowhere to store their product.
Here's the point: April 20 was one event where a single facility in a single country ran out of future leased storage capacity for the month of May.
The price crash will happen again. June WTI contracts have another 30 days of trading. Cushing oil storage and transportation will be full.
But even that is a teaser trailer for when the world runs out of storage.
Angel Reyes
Futures contracts have a long time before expiry, now, means the speculative value of oil had to increase back to somewhat normal values until the contract gets close to expiry.
Andrew Young
Ok, so from now til end of may the price is for June contracts?
And i assume that if the situation doesn't get back to normal in may, price will fall down like now.
Am i right?
Chase Wood
why is ethereum going up?
no one uses it
Adam Cruz
OPEC's price war (AKA Saudi Arabia and its cronies) is just a fight with Russia about who should cut production from 2018 agreements.
Yes, the Saudis can oversupply indefinitely, which will push prices negative and keep them there, which will destroy several energy producers around the world. The US is not one of them.
Saudi Arabia has production capacity that could make 20mn barrels/day (AKA one-fifth of global output) go offline.
Producers who are fucked:
-Canada (Alberta province) Landlocked, it must sell to the US market that is already saturated.
-Venezuela. 'nuff said.
-Russia. Shut-in wells freeze.
-Azerbaijan and Kazakhstan. Landlocked.
-Nigeria. 'nuff said.
-Iraq. 'nuff said.
United States is a crude oil exporter. We can frack cheaper than Saudis can drill conventionally. Their only advantage is deep pockets, and money is just something you throw off the back of a train.
Levi Gutierrez
>Ok, so from now til end of may the price is for June contracts
Good question. Right now you can buy futures contracts for June, July, the entire 2020 calendar and the next 12 months. Contracts expire a few days before that month begins.
Yes, the price can go even lower than Monday's record breaker if consumption does not improve.
Hunter Lee
>Right now you can buy futures contracts for June, July, the entire 2020 calendar and the next 12 months
Yes definitely, but the price of July and the others can keep the same price because no one knows when things will get better.
I guess price falls as soon as it becomes clear that there won't be a solution in the next month, like it happened in these days for may contracts.
Does the contango effect has some relationship with the price rising in these 2 days?
Jack Perry
No, it's because the June contracts are for delivery in June, which is a full two months ahead of time, which nobody knows exactly how bad the situation will be in 2 months
Angel Johnson
>Does the contango effect has some relationship with the price rising in these 2 days?
Yes ans no. The recovery was inevitable as producers were taking literally any bid being offered to move crude, which moved cruse. Hence, there was room for prices to recover. It's standard supply and demand.
You also need to keep in mind seasonality is fucked as we have never had a price war amid a global viral outbreak. Anything can happen, we have nothing to compare it with historically.
Samuel Gomez
When should we sell all our oil investments?
Christian Thomas
Because it would be a lot higher than that without the lockdown? Turn your brain on
Anthony White
in august when they are up 200%
Henry White
Well if you look at crude prices during the last contract, they pretty much fell off all month long and only gapped up near the end because of hopium, then immediately fell back down. Idk about when to sell oil investments unless you have USO and UCO, which I would sell sooner rather than later.
Carter Torres
yes good goy. stay inside forever until (((they))) tell you its safe!
Ayden Bennett
Bro my OAS is up 130% currently
Aiden Fisher
USO is going to the moon, get in now or forever hold ur peace
Hunter Nguyen
Please god let there be war in the middle east
Jaxson Carter
Do you even know what USO does
Evan Walker
They buy oil ETF. Its all I know.
Anthony Morgan
>why is bitcoin over $0.01?
>nobody uses it!
Angel Evans
USO is about to reverse split and call options are going to Moon like fuck.
Dylan Ortiz
Oy vey
Michael Cooper
Are you one of those triple-digit geniuses who advocate that people stop taking their meds as soon as they stop feeling symptoms?
Jack Long
Commodity capitalism to intellectual capitalism
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Brandon Brooks
They buy oil futures retard. And right now its not tied to the spot price of oil but ultimately future prices will increase pushing up the price of USO. Might take some time but it will happen.
Kevin Stewart
7% in my hometown