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On April 20, energy traders fled from the expiring May U.S. oil futures contract sending the contract deep into negative territory for the first time in history. Almost no buyers are willing to take delivery of oil barrels because there is no place to put the crude.
The price on the futures contract for West Texas crude that is due to expire on April 21 fell into negative territory – minus $37.63 a barrel. Sellers were actually paying buyers to take the stuff off their hands.
At the same time, U.S. stocks fell from a six-week high, with investors on edge as oil futures plunged to unprecedented levels and a spate of corporate earnings on tap. The S&P 500 halted a two-day gain and the Dow Jones Industrial Average fell more than 2%.
The developments on the oil market is a logical continuation of the ongoing oil war launched by Saudi Arabia in March. In April, OPEC+, including the kingdom, Russia and even the US, reached a deal to cut off the oil output. However, the deal did not put an end to the conflict and now the Saudis are attacking market by slashing the price of their oil rather than by pumping additional barrels.
So the vast fleet of Saudi leased tankers ply the seas like the Flying Dutchman seeking in vain!
Oh yes but many others as well.
I’m studying history yeah! US oil + hegemony trade.
We are past peak oil two years ago and now with western economic meltdown and 80% of their deadbeat GDP going into socialist propping up of the dead economies and unemployment benefits, the only real winners of ZERO DOLLAR OIL are China and most the developing world where most things are manufactured anyway. The Americunt lardass dumbass motherfuckers are dying for a commodity that has zero value. The Saudi and Zionist cunts are in big trouble too as the western deadbeat beggars afflicted with Pimpeovirus can not prop them up for long. This has been a checkmate by Russia and Iran, with China as the kingmaker.
I often has predicted to find some goldbars for myself in my street. I even has a very big bag behind my frontdoor for it :)
You cant even see Your Chinese succes also need buyers, which often is – USA, EU and Japan.
Anyone normal in the world can see USA dont need oil from there and several big oilcompanies are not American at all as well as they are countries and the contracters also are not americans.
The dominans are for You are stupid again and again and seenes to need a violent policemen to understand anything.
Yout own parts is the mpst corrupt in the whole wolrd. Those are the spilers for good trade.
https://maersktankers.com/fleet/mr/fleet-lists fx is a Danish Company on the Danish stockmarket. I count 75 which is not:
https://maersktankers.com/fleet/mr/fleet-list
Not to nitpick, BMWA1, but the Saudis own their fleet of tankers, they don’t lease them. Idle/empty Saudi tankers just stay at anchorage until needed. Saudis lease foreign-owned tankers for floating storage. Any they have leased are 1) already full and 2) anchored in the Persian Gulf. There are still hundreds of empty foreign-owned tankers whose owners would gladly lease to the Saudis if they wanted even more floating storage. The Saudis are hurting from low oil prices and demand, but lack of additional storage hasn’t been an issue for them so far.
The negative prices are unique to US markets trading May futures for Texas crude grades contracted to be delivered to the nearly-full Cushing hub. Those particular WTI futures are used as a benchmark, but are not the only US crude futures traded, nor are all US crude futures contracted for delivery to the Cushing hub.
Yes the biggest price crashes are related to regional capacities or limits. Urals use different benchmark s I suppose. Most Russian oil is sent via pipelines for export? I did read that Saudis were leasing many ships so price to lease is also higher…in Oilprice.com maybe.
As I wrote two weeks ago, oil is fucked as the Saudi morons took on Russia and Iran, both of whom have large stable diversified economies and and withstand ZERO DOLLAR barrel for at least a decade or more. The Americunt dumbasses are now dying for Syrian oil which ha no value, how stupid can you really be?
Even while the stocks are plummeting, the oil industry is in chaos, and ever-increasing Corona, these two members of the Axis of Evil are still screwing-around in Syria ??
https://uploads.disquscdn.com/images/43213c45199e84889b1c2febefbebff15ecd5199c1f43534fd3aa0ab94c73f8d.png
Well, not only them but many other oil producers.
There are other loosers. Fx the cheep oil and gas for some times makes windtubrines and solar energy more expensive to buy.
The winners seemes to be the consumners getting some compensation for the small regression before oil and now corona.
The most important looser in this are Russia, which started it. Not long time ago it was calculated they had to have 40 dolar a barrel. Now they are down to 20 dollar pr barrel, but selling double as compensation is impossible in the regresion Corona included.
To me the “Evil” should be added some selfcreated hard S&M by Putin himself.
It’s not bad at all,unless you investing with bush,cheney + cruze (texas)? The price of electric cars will drop 40-45%,you know so they can compete viably on the future and it will be a very prosperous future indeed,better atomic/fossil energy deals everywhere in the world,except maybe california
And they can’t switch off some of pumps since they are made in USSR, if stopped they never turn on.
“The most important looser in this are Russia, which started it. Not long time ago it was calculated they had to have 40 dolar a barrel. Now they are down to 20 dollar pr barrel, but selling double as compensation is impossible in the regresion Corona included.”
Are you even on the same planet as the rest of us? At $40/bbl Russia is low cost producer. It costs the USA upwards of $60/bbl. Russian producers have a low debt load …. US producers are leveraged to the tits and no one will lend them any more money …. the Fed is buying up all their existing bonds because no one will touch it let alone issue more debt. There have been bankruptcies and banks have started seizing assets.
All you have to do is look at todays oil prices to get the dire situation the USA is in right now. British Brent is at $23/bbl, Russian ESPO is at $26 while US WTI is selling at $-4/bbl.
That’s right while the rest of the world still gets something for their oil the USA has to PAY people to take their oil.
The US problem today is debt. Debt requires growth. They already owe more than their GDP can cover in good times. Now they are in negative growth but they still have their debt obligations. Rumour has it that the US threats against China over Covid-19 is a smoke screen for the USA defaulting on it’s $trillion debt to China. The Fed now owns the US bond market and are moving into equities …. US capitalism is dead …. they are now officially a socialist country.
I believe you answered your own question :)
The $40/bbl is not technically what Russia ‘needs’ – it was just an estimated average they used last year as a forecast price for figuring out government revenues from oil export this year as part of their budgeting process. It was a conservative estimate at the time compared to the higher estimates a lot of other oil exporter countries were using. These are annual budgets, so they’re estimating revenue from an average export price over the entire year.
So less tax revenue from oil exports for the Russian government than estimated – significant, but not catastrophic (say, compared to the Saudis). It’s still not enough of a hit that Russia would even consider borrowing money from anyone. That tax revenue drop is also somewhat offset by the lower Russian government/military fuel expenses.
Saudis and GCC? They’re f’ked. They’re already broke and issuing more debt to keep their governments afloat, and that debt keeps costing more to insure against default… because the GCC issuers are broke. The GCC’s biggest budget expense is various kinds of government payments to most of their (poor) population. Cut back on that, and they’ll quickly have food riots followed by Toyota gun trucks full of jihadis driving through their capitals to string them up.
https://uploads.disquscdn.com/images/8eae3d47e61e363a8cde5151af597713580c4be212ea5c68152c820ca2d1b87b.png
The end of saudisis arabia.
The end must be looking at Your behind. You will see it better, if You shave.
Are you on LSD?
“The end of saudi arabia” is the LSD part.
Is it? They are wasting money 24/7 plus they are fighting a lost war, with no income…
Haha. Russia is weapons for no oil.
What…?
James Watt was here.
The guy is a retard, never reply to him as this is his only outlet and he craves attention. No one can understand a word of his idiotic babble anyway.
He’s a failed MK-ULTRA experiment
Really have to give the petrodolla the flick,each nation to their own?
Americunts too as the stupid dumbass fuckers are dying for Zionist parasites and worthless oil in the Middle East.
Today was a good day for news the past week was pretty dull in my opinion.
Many you live in interesting times!
The US Petro Dollar ‘Free Lunch’ is reduced to a ‘Hot Dog’ from a scruffy street trader now. :)
The USA has been, ‘All fur coat and no knickers’ since WW2. The old hag is wrinkled and ugly now.
Can I get Donner meat chips and gravy instead?
Only during Happy Hour. :)
I picked up some oil on the expiring May contract for free today Florian. Seems the paper traders do not actually have storage space to take delivery. And it’s all light sweet crude! Now I just have to wait and find a refiner in about 6 months. :D https://uploads.disquscdn.com/images/645a5ea785c94ca8474e077175e006007c01701bb9fc01a1afbeb7134870fb35.jpg
How much are they paying you for these delivered to your yard?
The price at the time was negative 20 dollars per barrel. So they paid the paid the price for shipping and did all the work for free.:)
I will pay you negative $10/bbl for them right now. Just think of the instant $-10 profit you’ll make on your investment It’s like free money! (I don’t want the yellow-striped one – seems suspicious).
This will have a huge negative spillover into the deadbeat western economies like Americunts and Canada which are having almost a million people lose their jobs for good as worthless shale and toxic tarsands are not even pissing on. Russia and Iran are low cost high quality producer diversified producers with large domestic markets and can ramp up production anytime. The Saudi shithead cunts are the worst losers as they are saddled with immense losing war costs, an uneducated unproductive population hooked on public handouts and the fuckers import everything, including basic food, so where is money coming from now?
Cheep oil makes more jobs then it takes.
On the plus side, no weeds grow anywhere close to the yellow stripe barrel
C’mon mate we all know this is your stock pile https://uploads.disquscdn.com/images/efcab96a3e36777577feaa4b07a8c66957fb4a39a267bf545ac02d45ee886819.jpg
So You are hidng Tjernobyl or what :)
The barrel with the yellow stripe was destined for the White Helmets I suspect and contains Sarin :)
Several here onvious think USA is only oil and depended . This is a TOO MUV`CH OIL market but here its descrtiebed by several gfantics as if there was a lack pof that dirty fossile.
American consumers, american producers and the rest of the whole world down to maybee the smaLL SCOOTERS in Vietnam love cheep oil. It doesnt matter, where it comes from.
So USA is hit hard on oil and gas, but mpst production there has it only as an important tool.
Much like You prefare other has fiascos, because You have no idea about making succes Yourself. You even deny any succes hard and the needed upgrading for almost anything.