Oil price lowest in 20 years

[helmsdale]

Have to admit I’m having trouble getting my head around all this

See:

https://www.zerohedge.com/markets/here-full-explanation-behind-oils-unprecedented-negative-price https://www.zerohedge.com/markets/here-full-explanation-behind-oils-unprecedented-negative-price

and:

https://www.zerohedge.com/energy/heres-next-problem-where-do-100-million-oil-barrels-get-delivered https://www.zerohedge.com/energy/heres-next-problem-where-do-100-million-oil-barrels-get-delivered

I don't imagine there are alot of producers taking the spot price this late into the month, and there are a shit ton of speculators that are desperate to unload their paper barrels, or else they are going to become REAL barrels when the may contract settles (tomorrow afternoon I think).

[AlbertaFarmer5]

See:

https://www.zerohedge.com/markets/here-full-explanation-behind-oils-unprecedented-negative-price https://www.zerohedge.com/markets/here-full-explanation-behind-oils-unprecedented-negative-price

and:

https://www.zerohedge.com/energy/heres-next-problem-where-do-100-million-oil-barrels-get-delivered https://www.zerohedge.com/energy/heres-next-problem-where-do-100-million-oil-barrels-get-delivered

I don't imagine there are alot of producers taking the spot price this late into the month, and there are a shit ton of speculators that are desperate to unload their paper barrels, or else they are going to become REAL barrels when the may contract settles (tomorrow afternoon I think).

And I presume that if you don't have a tanker already booked to store it, taking delivery is a bit of a problem right now?

[helmsdale]

And I presume that if you don't have a tanker already booked to store it, taking delivery is a bit of a problem right now?

yea... 1 contract = 1000bbl. with 100K open interest, thats alot of swimming pools to fill in the hamptons.

[Hamloc]

That's the May futures which expires tomorrow, June contract is $22.00.

Certainly Forage you are correct but to me this illustrates the extreme demand destruction of the coved-19 pandemic. How will this affect countries that depend on oil revenue including Canada and their ability to pay the bills? As Canadian farmers we depend on the ability to export our commodities, look at how the closures at meat processing facilities have affected prices, how restaurant closures are affecting demand. Volatility like this one day drop in oil prices could become the new normal and certainly increases the risk level as we prepare to plant our crops. I for one have always felt confident that if I wanted all my crops could be sold in a timely manner, this may not be the case in the near term. Certainly interesting times.

[Ache4Acres]

Spot price is certainly close to zero right now. I guess we will know in a few days as June futures become the new measuring stick. They are set for a vert rough couple weeks and quite possibly go negative as well.

I still don’t fully understand all the consequences here but trump sure looked sick on the daily talk.

I am scared to say it but war is possibly the way this is settled. Close the straight of Hormuz entirely.

[malleefarmer]

Should have said getting my head around the ramifications and what’s end game.

Darn lucky it won’t ever happen with grain and or meat ups and down but nothing like this.

Thought about a night in a bar in brooks ab think it was called 19 or 17 few oil workers there good for a beer and a chat dismal short term outlook

[farmaholic]

Spot price is certainly close to zero right now. I guess we will know in a few days as June futures become the new measuring stick. They are set for a vert rough couple weeks and quite possibly go negative as well.

I still don’t fully understand all the consequences here but trump sure looked sick on the daily talk.

I am scared to say it but war is possibly the way this is settled. Close the straight of Hormuz entirely.

To war over what exactly? Going to convert an economic war into a physical war? Who is going to make the first hit and why? What dreamt up excuse will be conjured up to justify a military strike? Or is blockading the Straight or Hormuz an act of war. Geez, then Canada had a civil war before Corona virus scared all the social justice warriors into staying home.

[SASKFARMER]

All I was pointing out to the two above is the fact someone is going to make a lot of money off this and its not the speculators on the way up.

[foragefarmer]

Hamloc

"Certainly Forage you are correct but to me this illustrates the extreme demand destruction of the coved-19 pandemic. "

You should be looking at the supply end. Putin and Saudis are purposely over producing to destroy the American oil industry. Covid 19 just conveniently came along at the right time.

Putin's goal is for Russia to become the super power of world, and he is doing it unchecked!

[bucket]

Putin is running western canadian ag out of business with massive investments in infrastructure...

And we are funding China's infrastructure with a pretty good chance of never seeing a return on investment....

Meanwhile China and Russia are working together as the liberals become Trump haters to our largest trading partner and big brother...