A barrel of oil is worth nothing!

[HedonistForever]

https://www.star-telegram.com/news/c...242148631.html


Oil prices plunge so far that a barrel is now worth less than nothing



Oil prices plunged below zero for the first time ever on Monday due to decreased demand during the coronavirus pandemic, media outlets reported.


U.S. crude oil prices dropped to negative $3.70 per barrel as of 2:15 pm. Eastern time, according to The Associated Press.



The drop in demand during COVID-19 shutdowns have forced oil producers to “pay buyers to take the glut of crude which they cannot store, as rising stockpiles of crude threaten to overwhelm oil storage facilities,” The Guardian reported.




Goldman Sachs warned that storage facilities, terminals, refineries, ships and pipelines would run out of room to store oil, according to CNN.
“The market is starting to signal that not only is there no demand for this crude, eventually there could be nowhere for it to go,” Jeff Wyll, senior energy analyst at Neuberger Berman, told CNN.


Oil prices had already begun to drop at the beginning of the year due to the coronavirus crisis, according to The Los Angeles Times.
“Refiners are rejecting barrels at a historic pace, and with U.S. storage levels sprinting to the brim, market forces will inflict further pain until either we hit rock bottom or COVID clears, whichever comes first, but it looks like the former,” Michael Tran, managing director of global energy strategy at RBC Capital Markets, told the Los Angeles Times.


Of course the value will come back but how long and what damage will be done?

[gnadfly]

That was for May delivery. Last time I looked it was -$37 a barrel. June delivery contracts are still around +$20 or so. For now. Things are going to get bad.

Time to bend the economy.

Edit: A barrel of oil is still worth more than HorseHummers opinion.

[Why_Yes_I_Do]

Originally Posted by HedonistForever

...Oil prices plunge so far that a barrel is now worth less than nothing...

Not to be a Debbie Downer, but that's the least of our worries at this point.

BTW: I have family in the patch even (recently former) . There is a bigger picture that needs attention.

[HedonistForever]

Originally Posted by Why_Yes_I_Do

Not to be a Debbie Downer, but that's the least of our worries at this point.

BTW: I have family in the patch even (recently former) . There is a bigger picture that needs attention.

We are all entitled to our opinions and my opinion at this point in the crisis is that the economy and so much of it is based on energy prices, is the most important thing that needs attention. I think the science is coming along nicely, not as fast as we would like but what has ever been as fast as we like. So which is the most important, the virus which I think we will get a handle on or an economy that may just drop us into a depression with world wide energy prices crashing could be a big part of? While both are important the virus will only affect less than 1% of the population and as many deaths as that means, we have been living with those numbers of deaths do to a virus for years now. We have never seen unemployment numbers like this in our history. Oil prices never this low in history and if predictions that 25% or more of Americans small businesses may never come back, we are in deep do do more with a depressed economy affected all 320 million Americans than 40, 50, 60 thousand deaths which will end up being less than opioid, influenza and drunk driving combined.

[Why_Yes_I_Do]

Originally Posted by HedonistForever

We are all entitled to our opinions and my opinion at this point in the crisis is that the economy and so much of it is based on energy prices, is the most important thing that needs attention. ...

Notwithstanding, I like many of your posts. But do you want to bet your life on the above assumption?? The numbers you put forth are not even round off errors of what can happen. It has nothing to do with a flu virus either. It's about the willingness to be fully and totally controlled, like in China. That just don't sit well elsewhere. Even if gas is 99 cents a gallon.

[HedonistForever]

Originally Posted by Why_Yes_I_Do

Notwithstanding, I like many of your posts. But do you want to bet your life on the above assumption?? The numbers you put forth are not even round off errors of what can happen. It has nothing to do with a flu virus either. It's about the willingness to be fully and totally controlled, like in China. That just don't sit well elsewhere. Even if gas is 99 cents a gallon.

Bet my life? By taking my boat to a public boat ramp where I can launch my boat remaining 6 feet from another human? Which in most states you can't do to this day?



Bet my life that buying paint at Home Depot in Michigan while also shopping for cleaning supplies related to COVID-19 is putting my life a risk? A ridiculous over reaction IMHO.



Walking on a beach using social distancing or not, is risking my life? I'll decide that thank you.


You may have missed my earliest posts when I said yes, at 72, in the high risk category though I have no other health problems thankfully, I did not want to see the entire economy shut down to "protect me". I was perfectly willing to "protect myself" by staying inside.


I also believe that when this is all over, history will tell us that we went way overboard in much of the country.


So yes, I believe that far more Americans will be so financially hurt that they will never get their lives back and the repercussions of this shut down will be worse than the effects of the virus. I'm basing this on what the experts are telling us, that less than 1% of those who get this virus will die not all that different than influenza A which we do not shut down the country for.




And yes, of course I could be wrong. Just my opinion.

It's about the willingness to be fully and totally controlled, like in China. That just don't sit well elsewhere.

And that is what many Americans are protesting today, that they are being controlled to extremes, that they want more say in whether they are willing to "risk" their lives and if anybody wants to stay home and play it safe, that is your right but to be told you must, just flies in the face in what America is about.



Tucker Carlson had another good opening monologue tonight called "Shut up and obey". It isn't up yet but I will most it when it is.


Just watched a clip of Mayor DeBlasio telling New Yorkers, that if you see anybody "breaking the rules of social distancing", take their picture and text that information to DeBlasio's Brown shirts and he will send them there to deal with the offender.


Sound like China or America?

[HedonistForever]

I hear that AOC just posted that she is glad the oil industry has collapsed.


So this idiot thinks the oil and gas industry could shut down and the world would survive? And this is the future of the Democratic party? Their best and brightest? Of course we should get to renewable energy as fast as possible but that isn't tomorrow.


The American way of life would cease to exist if oil companies all went bankrupt and shuttered.

[oeb11]

AOC had best be careful - she rides around NY and DC in her limo - which won't do well at all without an oil industry.

her Soyulent Green New Deal is hardly an answer - reads as if written by a 4th grader.


HF has it correct - AOC and her radical "Progressives" are intent on destroying the American way of life - and putting themselves as nomenklatura in a soviet style Amerikan Socialist republic.

[Jacuzzme]

Off topic, but if aoc is a brilliant mind and economic major why was she pouring beer and not working as an economist?

[HedonistForever]

Let me get it down to a simply basic question. How would my decision to risk catching the corona virus affect anybody that has decided to stay home in isolation until they feel comfortable coming out of their home? Why in America can you not take a risk if you want or stay inside if you want? How am I going to give it to you if you are in isolation or if you decide to venture out and stay 6 feet away from me wearing a mask?


What am I missing here?

[Tiny]

Originally Posted by HedonistForever

I hear that AOC just posted that she is glad the oil industry has collapsed.


So this idiot thinks the oil and gas industry could shut down and the world would survive? And this is the future of the Democratic party? Their best and brightest? Of course we should get to renewable energy as fast as possible but that isn't tomorrow.


The American way of life would cease to exist if oil companies all went bankrupt and shuttered.

She deleted the tweet. She said she "absolutely loved to see" negative oil prices. She followed that up with "This along with record low-interest rates means it’s the right time for a worker-led, mass investment in green infrastructure to save our planet."

There are going to be a lot of unemployed Texans as a result of this. Being a free marketer I tend to think the U.S. government shouldn't get involved. But if prices remain low for a long time it'll be a pity to see the power back in the Saudis' and Russians' hands, after North American production has slowed to a trickle. They'll be able to raise prices at will.

HoeHummer, if you're listening, how do you feel about this? The Alberta wildcatter is about to go to the dustbin of history. The Chuck Wagon races at the Calgary Stampede will be next.

[HedonistForever]

Originally Posted by Why_Yes_I_Do

Notwithstanding, I like many of your posts. But do you want to bet your life on the above assumption?? The numbers you put forth are not even round off errors of what can happen. It has nothing to do with a flu virus either. It's about the willingness to be fully and totally controlled, like in China. That just don't sit well elsewhere. Even if gas is 99 cents a gallon.

So is what is happening more like China or America?


https://video.foxnews.com/v/61509423...#sp=show-clips


1:44 in makes the point

[Tiny]

Originally Posted by Jacuzzme

Off topic, but if aoc is a brilliant mind and economic major why was she pouring beer and not working as an economist?

She's a believer in Modern Monetary Theory. This boils down to having the government print money to buy whatever it wants. It means she has all the brilliance of the economists who guided Venezuela and Zimbabwe into hyperinflation and extreme poverty.

[eccieuser9500]

Originally Posted by Tiny

She's a believer in Modern Monetary Theory. This boils down to having the government print money to buy whatever it wants. It means she has all the brilliance of the economists who guided Venezuela and Zimbabwe into hyperinflation and extreme poverty.

And this is where the current deal-making genius got us.

Just had to chime in Tiny. She knows the value of hard work. Not capital gains. Workers of the world take power.

[Tiny]

Originally Posted by eccieuser9500

And this is where the current deal-making genius got us.

Just had to chime in Tiny. Workers of the world take power.

Well eccieuser, both AOC and the President have an abundance of confidence in their infallibility and wisdom. Which is not a good thing when you're talking about things like the Green New Deal and the trade wars. Just my opinion.

I do however like Trump's views on taxation and regulation. And I would like to bang AOC. The only Congresswoman who's more bangable is that Muslim woman from Minnesota.