No it means transactions are happening. And people keep selling and others keep buying.
LdN
Oil is trading close to $1.00 per barrel
- Thread starter bobroars
- Start date
No it means transactions are happening. And people keep selling and others keep buying.
LdN
No you were not told it could never happen. Obviously physical storage can run out.
Then they have to keep it stored in the ground where they are pumping it.
The issue is they haven't chosen to do that.
LdN
fill the strategic reserve and call it a day
I'm not losing sleep over the Saudis, Russkies and some speculators losing money- and yeah, I know it's not quite that simple, but it's still true
I'm not losing sleep over the Saudis, Russkies and some speculators losing money- and yeah, I know it's not quite that simple, but it's still true
What's your cost of storage and when do you get to release it?
I read earlier some of the mega tankers (1 million bbl) are leasing at $350k/day - $0.35/day/bbl for storage.
When do you think the oil market will recover and storage will draw down enough to make it worth selling? At 90 days you need to get more than $31/bbl or have someone paying you to store it still. Apparently still less expensive to pay high $$$ for storage to than slow/stop production in many places.
cash wouldn't help, it looks to me like, someone is paying someone else $38 (or what the last price was for the April contract) per barrel for them to take delivery of the oil.
Just think about the entire US not driving... for several weeks. That's a lot of gas not being burned.
LdN
Correct - I don't suspect oil will recover before 2021. Once the economy starts back up it still won't be at the same level of consumption as before and storage will already be full.
Wed prices will be or a June delivery. By then, five weeks away, a lot of oil, and its derivative products, will have been used up. Especially as the controls are relaxed and the economy picks up. Like I said, if the virus has a second wave and the controls remain, the price for June deliveries will drop since there will be little burn rate.
$1.25 here in Central Texas yesterday. $0.184 Federal tax and $0.20 Texas State tax built in there. With our Randall's reward card, paid $0.95 per gallon. Really been thinking of putting two 500 gallon tanks at the ranch (one diesel and one gasoline), but the shelf life of gasoline is 6 months max and 12 months for diesel. Would take too long to use it for the tractors and the gas for my truck.
And no fuel taxes being collected at the pump or tolls on the toll roads.
City parking taxes. City Parking Tickets.
Speeding tickets. DUIs. Etc.
A lot of local government agencies are going to get crushed.
LdN
QUOTE="LionDeNittany, post: 4762850, member: 310"]There are massive storage vessels off shore... and they also can use old ships. There is plenty of current unused storage.
Contango takes care of this problem rather quickly.
I guess at some point there's a need for storage that isn't available, but I doubt we'd ever get to that point. Contango would increase and facilities would be build.
I would like a newspaper to show facts about COVID. Not alarming articles. It's difficult to piece together real information with the amount of alarmist stories.
LdN[/QUOTE]
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It's a symbiotic relationship - sins are taxable, and that tax fuels government agencies...and if there are less (or no) sins then there won't be taxes on them.
[/QUOTE]
Your mistake is that you are confusing futures with physical delivery.
Rookie mistake.
LdN
No, its not full. Trump said we should be buying to fill it up but due to pipeline constraints they can only buy so much per day.
I'm not at all confused.. did you notice the part about the alarmist Media or am I confused about that too?
[/QUOTE]You seem confused.
Are you an alarmist?
LdM
The Feds say that your cost of a gallon of gas is comprised of:
20% Tax
18% Distribution
12% Refining
51% Crude Oil
I wonder who keeps the extra 1%. Maybe the guys from Office Space?
https://www.eia.gov/petroleum/gasdiesel/
I filled up my van yesterday with my Kroger discount. Almost 17 gallons for $11.
I'm not at all confused.. did you notice the part about the alarmist Media or am I confused about that too?
You seem confused.
Are you an alarmist?
No but I see what you are [insert donkey emoji]
They say fascism could never happen here but guess what.
Just saw this; Feds are leasing storage space in the strategic reserve system.
https://www.kallanishenergy.com/2020/04/16/us-negotiates-storage-contracts-with-nine-oil-producers/
Maybe they should give everyone a barrel of crude with the next round of as stimulus checks.. just saying
I bought a big ball from Kramerico Industries to store my Oil.
Oh, looks like we are gonna fill the strategic reserve with other people's oil, which we will have to give back to them, keeping only a lease payment.
Instead of filling breast implants with saline, you fill them with oil.
Run out of gas on the highway, just have your girlfriend squirt some into the tank. Now we are talkin'.
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