A barrel of oil now costs less than a cheap bottle of wine.
U.S. benchmark crude was trading as low as $6.50 a barrel Tuesday, more than 80% lower than the start of the year. The dizzying drop reflected stark suffering in the global economy that has left vastly diminished demand for oil.
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But there's consequences:
Even if this supply and demand situation is a relatively short-term problem, the impact on the Texas economy could be long-lasting, according to multiple industry experts.
“With the oversupply of crude oil, and this price dropping, we are going to see massive layoffs, furloughs, and potentially the devastation of the oil and gas industry,” said Ramanan Krishnamoorti, Chief Energy Officer for the University of Houston.
FROM HERE
This is sctually a pretty complex issue, for those not understanding (negative oil price?) Has to do with futures contracts (and people trading them who have no clue what they are doing!).
ReplyDeleteThe big enemy here however is our good lld friends in the Kingdom of Saudi Arabia! They don't like competing with domestic shale oil drillers, so they're going to flood the market until they go bust! Thanks SA, with friends like you, WHO NEEDS ENEMIES!?
The Saudis who are dues paying members of the Globalist Club are going to flood the crude oil market because this is just one more way of destroying America, the last bastion of true capitalism. They coordinated with the Chinky created pandemic in evoking the long planned Final Solution.
DeleteAnd yet a quart of Valvoline still cost $3.99
ReplyDeleteLower turnover. And the stores bought it at last month's or earlier prices. They're not going to sell it for less than they paid for it except as a desperation move to generate cash flow, which apparently isn't necessary ... yet.
DeleteThe best explanation I seen yet:
ReplyDeletehttps://www.caracaschronicles.com/2020/04/22/understanding-the-impact-of-oil-prices-over-venezuela/
The price volatility we saw in the last two days was a financial anomaly following a series of unfortunate events. In short, the price movements only affected a relatively small group of investors in financial contracts that were about to expire and which would have caused such investors to receive physical volumes of crude oil at a moment when storage options are running low and very expensive. Desperate to get out of a very messy situation, those investors decided to dump the contracts and pay someone else to get out of the problem, leading to the now-famous negative prices. Most of the media reports prices for these types of contracts as if they are the price of oil. In reality, no oil barrel was traded at negative prices.
Who the fluck is Ramanan Krishnamoorti, Chief Energy Officer for the University of Houston. What? They couldn't find a white guy to be Energy Officer? They import them now? Secondly, why does a university have a "chief energy ossifer?" Does he give tickets to you if ya don't use enough energy? Let a fucking asteroid land on us...
ReplyDeleteNo, lets start burning things down with gasoline.
Delete-rightwingterrorist
Youse in the colonies don't know you're born. Before the current shambles, diesel was £1.24 a litre ($5.75 a US gallon): now oil has slumped it's been £1.08 a litre for the past three weeks ($5.00 a US gallon). Where's the hidden profit going? The Treasury, mainly.
ReplyDeleteWait'lll the other shoe drops. According to a story I read yesterday, there's a couple dozen giant tankers headed our way from Saudi. When they arrive, there's no place to put the oil. ALL USA LAND BASED OIL STORAGE IS FULL or is contracted to someone other than Saudi or their oil buyers.
ReplyDeleteSaudi and Russia have been trying to bankrupt the shale oil industry. What they didn't think about is after bankrupting them, the oil they have IS STILL IN THE GROUND, while they keep pumping and transporting theirs, AT A LOSS.
All those red arrows on the map are tankers.
https://www.marinetraffic.com/en/ais/home/centerx:-109.1/centery:33.8/zoom:4
Nemo
Yep.
ReplyDeleteLosing my job.
In a world gone mad the mad get set loose.
-rightwingterrorist