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FE Power Forums => Non-FE Discussion Forum => Topic started by: turbohunter on April 20, 2020, 01:05:42 PM

Title: Oil for less than a buck a barrel?
Post by: turbohunter on April 20, 2020, 01:05:42 PM
I may be writing this to soon in the day but geesh, never seen that before.
Let’s see, 12 mpg with an FE? I’m good!  ;)
Title: Re: Oil for less than a buck a barrel?
Post by: Drew Pojedinec on April 20, 2020, 02:10:16 PM
The reason for the plunge is due to investors selling the oil since there is no where to store it.

If you hold a large amount right now there is no where to put it on land.....
The marine industry is about to get busy loading tankers to hold offshore.
This *might* seem like a good idea to invest, but many of these tankers cost $150k a day.... totally possible they’ll end up losing money on the oil when the storage cost outweights the oils value.... and who are you going to sell it to?
Title: Re: Oil for less than a buck a barrel?
Post by: BattlestarGalactic on April 20, 2020, 02:21:03 PM
Kinda like the farmers dumping their milk because no one is buying enough?   I haven't stop buying milk.   I suppose with all the restaurants closing, there must be a real lull in milk sales?

Wouldn't mind buying myself a big ol tanker trailer of some 93 octane real cheap and storing it in the driveway!!  I've been more apt to hop in the old blue truck and drive it since 8-10 mpg doesn't hurt as bad when fuel is near a $1/gallon!!!  I haven't been able to fill the tank for under $20 in decades.   ;D 

It wasn't long ago that I couldn't fill the twin tanks in my '95 F150 without having to reswipe my CC because it cut off at $75.  Yikes!
Title: Re: Oil for less than a buck a barrel?
Post by: cjshaker on April 20, 2020, 02:28:40 PM
Wouldn't mind buying myself a big ol tanker trailer of some 93 octane real cheap and storing it in the driveway!!  decades.   ;D 


Only problem with that is that gas doesn't store well with the ethanol in it. I've found (just my experience) that in a good container that can be sealed, it is still good for about a year or maybe more. Certainly not the 5-10 years that it used to be good for. I have a feeling though, that you wouldn't have any problem using that fuel up in a years time...lol
Title: Re: Oil for less than a buck a barrel?
Post by: My427stang on April 20, 2020, 02:33:14 PM
I think it's time to buy some oil futures :)  Hard to believe it will go lower when its at zero
Title: Re: Oil for less than a buck a barrel?
Post by: machoneman on April 20, 2020, 02:40:45 PM
This really bad news btw. It signals a world-wide recession, as if any doubters of the same still exist. Hoo-boy we're in for a bad ride now as if the Corona virus alone wasn't bad enough.
Title: Re: Oil for less than a buck a barrel?
Post by: Drew Pojedinec on April 20, 2020, 02:48:07 PM
I think it's time to buy some oil futures :)  Hard to believe it will go lower when its at zero

It will when you pay storage fees with no where to sell it and the producers are still producing.

Well, good luck.
Title: Re: Oil for less than a buck a barrel?
Post by: Dumpling on April 20, 2020, 03:21:02 PM
Think the US ethanol program might be scaled back, or eliminated?
Title: Re: Oil for less than a buck a barrel?
Post by: preaction on April 20, 2020, 03:21:12 PM
Finished at -23.00 a barrel.
Title: Re: Oil for less than a buck a barrel?
Post by: turbohunter on April 20, 2020, 05:08:25 PM
Hmm mine says it settled out at -35.63 a barrel. I must have other sources than pre-. Lowest ever.
The bigs will get bigger and the little guys are in for a tough slog.
Of course here in Clownyfornia we have about a dollars worth of taxes on every gallon. Be interesting to see where it goes.
I remember as a kid collecting nickels and quarters to by gas.

Title: Re: Oil for less than a buck a barrel?
Post by: cjshaker on April 20, 2020, 05:21:06 PM
I remember as a kid collecting nickels and quarters to by gas.

I would turn in pop bottles for 10 cents each, when they were still made of glass. Of course I could cruise all night on $2.50 worth of gas back then! :P
Title: Re: Oil for less than a buck a barrel?
Post by: mike7570 on April 20, 2020, 05:38:45 PM
$.10? I remember it being $.03. I could take my small motorcycle to the gas station in high school and it wouldn't hold $.50 worth.
Title: Re: Oil for less than a buck a barrel?
Post by: FElony on April 20, 2020, 07:14:33 PM
I think it's time to buy some oil futures :)  Hard to believe it will go lower when its at zero

https://www.zerohedge.com/energy/oil-producers-will-pay-you-54barrel-take-south-texas-sour-their-hands
Title: Re: Oil for less than a buck a barrel?
Post by: 57 lima bean on April 20, 2020, 07:25:28 PM
    Can you imagine what some Governors will do to State gas taxes with this? 
Title: Re: Oil for less than a buck a barrel?
Post by: MeanGene on April 21, 2020, 08:56:34 AM
Always amazes me that there are several ports and refineries within a half-hour drive, but we have some of the highest fuel prices in the nation. Oh yeah, the Taxifornia gas taxes- and the special formulations. And we have to pay for Aunt Nancy's vineyard estate- and her fancy ice cream lol
Title: Re: Oil for less than a buck a barrel?
Post by: Dumpling on April 21, 2020, 10:33:17 AM
What does a vineyard estate and ice cream have to do with state has prices?

High pension costs for a bloated government maybe...

Title: Re: Oil for less than a buck a barrel?
Post by: Drew Pojedinec on April 21, 2020, 10:47:22 AM
What does a vineyard estate and ice cream have to do with state has prices?

High pension costs for a bloated government maybe...

His name is MeneGene.... maybe he is just angry
Title: Re: Oil for less than a buck a barrel?
Post by: Dumpling on April 21, 2020, 10:57:27 AM
What does a vineyard estate and ice cream have to do with state gas prices?

High pension costs for a bloated government maybe...

His name is MeneGene.... maybe he is just angry

Does his anger extend to puppies and rainbows?  What's his problem with wine and ice cream? Is it some esoteric pairing issue? Is he lactose intolerant?
Title: Re: Oil for less than a buck a barrel?
Post by: preaction on April 21, 2020, 02:05:43 PM
Regular is still $2.00 a gallon in New Jersey. :o
Title: Re: Oil for less than a buck a barrel?
Post by: 57 lima bean on April 21, 2020, 02:16:29 PM
         It could be early stages of Camaro 19.Sure hope not.
Title: Re: Oil for less than a buck a barrel?
Post by: Falcon67 on April 21, 2020, 04:06:13 PM
WTI is under 10 right now, was -40 yesterday and mostly around -25 all day.  West Texas is going from the great guns, worlds #1 producer to basically a vacant building.  Even when our track opens car counts are going to be super light because a large amount of our people, especially the fast cars, are oil patch related.  Either work in the patch or own companies that service the patch. Unemployment filings here have been light, but this will change that is a bunch of ways unseen right now.  Saudi claims they can run at sup $20 prices for several years, so this likely isn't going to end soon. 

And yes, the main storage locations are about to run out, and I've been told some companies have already paid to move it.  Hence the major crater of price.

Long way between market price of crude and the gas pump.  Besides, if you could buy 10,000 gallons for your highway stop-n-go for 0.50 and sell it to people happy it's only $1.50, you'd be fool not to.  Not that I know what gas futures are.  Well - "Reformulated Gasoline Blendstock for Oxygen Blending" futures are selling at 0.59.  But looks like you have to contract for 42,000 gallons to get that price.
Title: Re: Oil for less than a buck a barrel?
Post by: Falcon67 on April 22, 2020, 03:31:10 PM
Interesting comments

The shocking collapse in US oil to $-40 added an exclamation point to the problem facing the industry. Oil futures require that holders of a contract take delivery of barrels when the contract expires. But no one wanted to get crude delivered to them in May when storage capacity may run out. Even if it doesn't run out, storage costs have skyrocketed.
"Holders of May contracts were effectively willing to pay someone to get them out of their long positions...to avoid being physically delivered crude oil next month," Goldman Sachs analyst Damien Courvalin wrote in a note to clients Monday.

Mizuho analyst Paul Sankey said Tuesday US oil futures could "quite possibly" crash to $-100 in May.
"The physical reality of oil is that it is difficult to handle, volatile, potentially polluting and actually useless without a refinery," Sankey wrote in a report to clients. "If you had a stinking barrel of oil in your back yard, would you pay someone $100/barrel to take it away? Yes, and you would probably be relieved you were not charged $300."

And the prediction is that if it lasts a bit, when demand comes back there will be a shortage and prices will shoot up.  Maybe.  Unless we have a flare up and we go back to shelter status, then there would be another crash.  Whooboy, what a year.
Title: Re: Oil for less than a buck a barrel?
Post by: Dumpling on April 22, 2020, 03:48:44 PM
For storage, can't they pump it back into the ground like they store some gases?

What companies that store oil can we invest in as revenues for them should be rising?
Title: Re: Oil for less than a buck a barrel?
Post by: Drew Pojedinec on April 22, 2020, 04:13:34 PM
Having been around the industry a good bit....
I think you underestimate the size of all this.
Yeah, sure, a few 100,000 barrels no problem, but the infrastructure cannot handle the massive amounts produced if it has no where to go.
Stopping a well isn’t just turning a valve either. Heck of a pickle to get in.
Title: Re: Oil for less than a buck a barrel?
Post by: shady on April 23, 2020, 08:05:49 AM
The big oil companies have been gouging us for years. I say let them eat it. I do however, feel bad for the guys and gals drilling, producing and shipping it.
Title: Re: Oil for less than a buck a barrel?
Post by: cjshaker on April 23, 2020, 08:32:55 AM
Regular is .99 where I'm at. Premium is $1.99. There used to be a spread of only .20 between regular and premium. That doesn't happen anymore.

I do however, feel bad for the guys and gals drilling, producing and shipping it.

 Once the weather breaks a little bit, I'ma gonna do my best to get those people back to work!  ;D
Title: Re: Oil for less than a buck a barrel?
Post by: machoneman on April 23, 2020, 08:46:45 AM
Still high IMO here in the collar county of Chicago. $1.89 for regular here.
Title: Re: Oil for less than a buck a barrel?
Post by: Falcon67 on April 23, 2020, 11:58:43 AM
The big oil companies have been gouging us for years. I say let them eat it. I do however, feel bad for the guys and gals drilling, producing and shipping it.

Sadly, potentially hundreds of companies will file Chapter 7 or 11 because of this.  Guess who will be there with the cash to buy the leases and/or whats left.  Exxon/Mobile, Chevron, Conoco, etc
Title: Re: Oil for less than a buck a barrel?
Post by: Heo on April 23, 2020, 06:03:56 PM
Still high IMO here in the collar county of Chicago. $1.89 for regular here.

Just rub it in just rub it in ;D try over  $4,20 for regular
Title: Re: Oil for less than a buck a barrel?
Post by: cattleFEeder on April 23, 2020, 06:27:36 PM
Gas is cheap have some fun. https://www.youtube.com/watch?v=_-qaC3NJ5ww
Title: Re: Oil for less than a buck a barrel?
Post by: Kirk Morgan on April 23, 2020, 08:32:19 PM
The retailers are making a killing. I buy diesel wholesale for the excavation company i word for and 3 weeks ago we paid 1.12$ per gallon for dyed and a 1.53 for highway diesel. We buy about 3000 gallons at a time.
Title: Re: Oil for less than a buck a barrel?
Post by: Katz427 on April 24, 2020, 09:33:34 AM
I hate geopolitics, which is what this is in reality. We are watching the end of the US petro dollar. Drew is correct in his assessment, this can only end very bad for everyone. So as the previous poster said, better enjoy it now, ( gas/ oil prices) while you can.
Title: Re: Oil for less than a buck a barrel?
Post by: Kirk Morgan on April 24, 2020, 06:04:41 PM
We received a shipment of fuel today. .82 dyed diesel and 1.35 for highway diesel
I remember the fuel embargo back in the seventies i had just moved out of the house. I could not afford to go anywhere.
Title: Re: Oil for less than a buck a barrel?
Post by: Dumpling on April 25, 2020, 12:13:02 AM
We received a shipment of fuel today. .82 dyed diesel and 1.35 for highway diesel
I remember the fuel embargo back in the seventies i had just moved out of the house. I could not afford to go anywhere.

Are freight companies still charging a fuel surcharge?  To cover the "higher" cost of fuel?
Title: Re: Oil for less than a buck a barrel?
Post by: mike7570 on April 25, 2020, 12:50:16 AM
We received a shipment of fuel today. .82 dyed diesel and 1.35 for highway diesel
I remember the fuel embargo back in the seventies i had just moved out of the house. I could not afford to go anywhere.

Are freight companies still charging a fuel surcharge?  To cover the "higher" cost of fuel?

Yep, I see it everyday. It fluctuates with cost but it’s still there.