Crude Oil Collapses - Again

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jetman

Federal Marshal
Nov 27, 2004
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Celebrating job losses along with saying now is the time to invest in expensive green energy when oil is at rock bottom prices. This is why she is called dumb.
 

NotOnTV

BRB -- Taking an okie leak
Sep 14, 2010
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Celebrating job losses along with saying now is the time to invest in expensive green energy when oil is at rock bottom prices. This is why she is called dumb.
Trump needs to put up montages of these tweets and other shenanigans as part of his campaign in heavy rotation.
 

Duke Silver

Find safe haven in a warm bathtub full of my jazz.
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Sep 17, 2004
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The other thing that makes me mad about that is at the time on various message boards I was on, (pretty sure this was one of them) if people suggested there was price manipulation going on, you'd get shouted down by a couple of posters that have something to do with the oil business about how ignorant and stupid you were.

Same thing happened when all the earthquakes got tied to the oil industry.
I got berated for suggesting the prices were manipulated
 

Donnyboy

Lettin' the high times carry the low....
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Oct 31, 2005
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So honestly curious, what kind of chaos? I mean at a certain point there has to be a price it shouldn’t go below right?
I have no idea but the May/June spreads have already traded factoring in May below today. This is uncharted territory. You can’t put 10 pounds of shit in a 5 pound sack and there are people that have put 100 million barrels of shit in the sack.
 
Sep 29, 2011
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It’s going to be chaos
So honestly curious, what kind of chaos? I mean at a certain point there has to be a price it shouldn’t go below right?
If you bought a May futures contract (and don’t have Cushing storage) and have yet to sell, you have to sell before the expiration. If there are too many sellers and not enough buyers with storage, the price could do anything.


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Donnyboy

Lettin' the high times carry the low....
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Oct 31, 2005
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If you bought a May futures contract (and don’t have Cushing storage) and have yet to sell, you have to sell before the expiration. If there are too many sellers and not enough buyers with storage, the price could do anything.


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I legitimately think it could hit $-100 and June can negative
 
Sep 29, 2011
1,555
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Breckenridge, CO
If you bought a May futures contract (and don’t have Cushing storage) and have yet to sell, you have to sell before the expiration. If there are too many sellers and not enough buyers with storage, the price could do anything.


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I legitimately think it could hit $-100 and June can negative
Might send some of the gamblers running for the hills and thus remove some volatility. Just a possibility.


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marshmo

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Dec 6, 2013
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This stuff here worries me more than the virus. Sorry, but it does. Some times all your options are bad, we need to get out from under the bed, start making some tough calls and get this baby going again.
 

CPTNQUIRK

I'm Your Captain!
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Nov 20, 2006
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In the Boondocks in Creek County, Oklahoma
I would assume for countries like Saudi Arabia if oil stays anywhere near this level long term the country will destabilize and the royal family's rule could be at risk. For the US it means a pretty rough economic recession unless we get back to normal soon. For me it means I gotta be ready for a new line of work.
The Saudis don’t deal in WTI oil. For example, Brent crude is still around $25/bbl. Also, May crude in overnight trading is up to -$1.82
 

Rack

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Oct 13, 2004
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I think until the Yemen problem can be solved this will be the new game. Russia obviously doesn’t have troops and armor in Yemen but they do have their material support via Iran. Energy being Russia’s second biggest export, this crash will hurt badly. I think that’s the goal of the Saudis.
Poking the Bear doesn't seem like a great plan..
 

olderschool

Banned
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Apr 14, 2009
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Poking the Bear doesn't seem like a great plan..
The collapse in oil prices is about the demand collapse caused by the pandemic.
Saudi Arabia and Russia did not see it coming just like the rest of us. OPEC + made a deal to cut 10 million barrels a day in production. Prices still went down like the Titanic . The demand collapse caused by the virus is estimated at 20 million barrels a day. The Oil markets will eventually correct it’s self. What is the timeline? Could be 24 months could be 10 years.