WTI

[lwaters]

Wow WTI just dropped to -37.63 that's right minus

 

[Opposite Pole]

Wow

 

[AfricaHunting.com]

 

[375Fox]

When I read this I thought it was a typo, it was +$10 when I looked earlier today, I won’t be going back to work for awhile now never thought I’d see negative oil prices

 

[Red Leg]

You can hear the sound of a couple of hedge funds cratering. The Saudis and the Russians would be hard pressed to have found a worse time to have a price war.

 

[Opposite Pole]

I’d be more worried about higher cost US producers. Saudis and Soviets have fairly large reserves that can cover their unbalanced spreadsheets for a couple of years.

 

[jacques smith]

This market is broken Who in world would pay u 37000 per contract to take 1000 barrels free

 

[postoak]

What do negative prices mean? Will I be paid to go fill up my car? [emoji57]

 

[Wheels]

Cushing stopped accepting oil about a week ago.

There is no place to put the oil now.

If anyone wants to pay me $37/barrel, I would accept delivery of 1,000 barrels, provided it is in barrels. I don't have enough room to make anymore money than that.

 

[Wheels]

You can hear the sound of a couple of hedge funds cratering. The Saudis and the Russians would be hard pressed to have found a worse time to have a price war.

You can also hear the printing of pink slips in Texas, Oklahoma and Louisiana today.

 

[Scott CWO]

My son is an Engineer for a major. He is in charge of 150 wells. They are closing wells down. Shutting down work-over crews and fracking crews. He says today is the day that contracts are set for oil delivery prices for the next 30 days. Upper management says price should be back up tomorrow?

 

[spike.t]

Just got sent this

Did you think you would ever see this.
US oil prices turn negative as demand dries up
https://www.bbc.co.uk/news/business-52350082

 

[Wheels]

My son is an Engineer for a major. He is in charge of 150 wells. They are closing wells down. Shutting down work-over crews and fracking crews. He says today is the day that contracts are set for oil delivery prices for the next 30 days. Upper management says price should be back up tomorrow?

There are over 100,000 contracts that have to be delivered, over 100,000,000 barrels, and no where to put it. Price for the delivery of the next contract will bounce up tomorrow, but the problem is where will that oil go, with no storage available.

Even if we all go back to our normal lives tomorrow, it is doubtful we will work off this oversupply until well into next year.

 

[lwaters]

Country in bad shape. These service industries like restaurants bars casinos cruise ship airlines will take a long time to get back alot of people in their late 50 and 60 were the ones that made up the majority of the business and now they aren't going to rush out real soon. Even the safari industry full of us old coots

 

[wesheltonj]

It's only WTI, others oils are still around $20

 

[ActionBob]

We are in a whole new World and don't fully realize it yet.

 

[cagkt3]

My son is an Engineer for a major. He is in charge of 150 wells. They are closing wells down. Shutting down work-over crews and fracking crews. He says today is the day that contracts are set for oil delivery prices for the next 30 days. Upper management says price should be back up tomorrow?

There are over 100,000 contracts that have to be delivered, over 100,000,000 barrels, and no where to put it. Price for the delivery of the next contract will bounce up tomorrow, but the problem is where will that oil go, with no storage available.

Even if we all go back to our normal lives tomorrow, it is doubtful we will work off this oversupply until well into next year.

Wheels has summed it up nicely. Today was the settle date for May volumes, and due to a massive oversupply prices fell through the floor. Depending on who you listen to, the world is oversupplied by somewhere around 20+ mmbo/d (million barrels of oil per day).

 

[Wheels]

Was figuring that DSC would be way down next year with outfitters hurting.

Now the oil patch may be hurting just as much as outfitters.

If we don't get back to work soon, all industries may be following suit.

DSC may fit back into the location by the airport.


Keep your heads up. We will figure our way through this someway!

 

[375 Ruger Fan]

Wow WTI just dropped to -37.63 that's right minus

That's for the May contract, which only trades for a few more days. May contracts are getting squeezed........nobody wants them. June contract is in the $20 per barrel range last time I looked.

All the storage tanks are full and there is nowhere to go with the crude. This is about as ugly as I've seen in my 39 year career. When I worked in Nigeria, we had a supertanker pull up to our deepwater FPSO (floating production, storage & offloading) facility and pickup 1 million barrels of crude every 4 to 5 days. If the system backs up, like it appears to be doing, a lot of production will get shut in (temporarily). You might have seen on the news where dairy farmers are pouring milk down the drain because they can't get it to market. Same type of deal, except apparently you can't shut in cows.

 

[Wheels]

That's for the May contract, which only trades for a few more days. May contracts are getting squeezed........nobody wants them. June contract is in the $20 per barrel range last time I looked.

All the storage tanks are full and there is nowhere to go with the crude. This is about as ugly as I've seen in my 39 year career. When I worked in Nigeria, we had a supertanker pull up to our deepwater FPSO (floating production, storage & offloading) facility and pickup 1 million barrels of crude every 4 to 5 days. If the system backs up, like it appears to be doing, a lot of production will get shut in (temporarily). You might have seen on the news where dairy farmers are pouring milk down the drain because they can't get it to market. Same type of deal, except apparently you can't shut in cows.

I read something about the worlds tankers all being full and at anchor waiting to be off loaded. No one will accept product.