Donald, the art of the deal, and oil prices

Still not enough to turn the producer states against repubs. Terminal dumbfuck states

he can blame Russia...I mean, Arabs.

> Donald, the art of the deal schlemiel, and oil prices

Fixed that for you.

WTI is now down to under $2 a barrel.    The DOE is considering paying producers to stop pumping.

I wonder if Gunner is selling gold and buying oil.

The DOE is considering paying producers to stop pumping>>>

Where is the underrated and unheralded genius of Rick Perry when we really need it?

https://www.nytimes.com/2020/04/20/business/stock-market-live-trading-co...

Oil prices just went negative...

Oil plummets as storage capacity runs low, and a quirk in pricing wipes out one benchmark.

Something bizarre happened in the markets on Monday: The price of a barrel of oil went negative.

Oil prices tumbled as the economic crisis set off by the coronavirus pandemic continued to destroy demand for energy, and as concerns grew that storage tanks in the United States are near capacity and unable to hold all the unused crude.

Oil that is scheduled to be delivered in June fell 12 percent Monday to about $22 a barrel, but at the same time a benchmark for oil to be delivered next month was essentially deemed to be worthless. Owing largely to a quirk in the way that oil prices are set, the May benchmark actually fell into negative territory, suggesting people who had oil to sell were willing to pay people to take it off their hands.

The problem is that the United States is running out of places to store its oil.

Oil is already being stockpiled on barges out at sea, and in any nook and cranny companies can find in their storage facilities. Now, traders are worrying that even this space is running out. Under futures contracts, West Texas Intermediate — the American oil-price benchmark — is delivered to Cushing, Okla., but investors are worried that there will be no place to put it there.

“Cushing inventories continue to increase at record-high rates and are expected to hit tank tops in May,” said Hillary Stevenson, director, oil markets, at Genscape a market intelligence firm.

Broader worries also growing that the deal reached on April 12 between the Organization of the Petroleum Exporting Countries, Russia and other producers will not be sufficient to prevent the oil markets being overwhelmed with a record surge of surplus oil. With much of the world in lockdown because of the coronavirus pandemic, global demand for oil has collapsed, leading to record surpluses.

The numbers explain why investors are worried. Under the terms of the arrangement brokered by President Trump, Saudi Arabia, Russia and other countries to cut will cut 9.7 million barrels a day in production, beginning in May. Analysts forecast that oil consumption in April will fall by about three times that.

“It is not enough” to avoid inventories rapidly building up, said Bjornar Tornhaugen, head of oil markets at Rystad Energy, a consulting firm.

On Monday, Halliburton, which provides equipment and services to energy companies, gave an early indication of the damage being sustained by the industry when it reported a $1 billion loss in the first quarter compared with net income of $152 million in the same period a year earlier.

Oil companies will either have to turn the taps off or see storage rise to tank-busting levels. David Fyfe, chief economist at Argus Media, a commodities pricing firm, expects tank farms around the globe to fill to the brim by the middle of May.

Trump when asked today on this deal:

 

I give myself a 10/10...

Keep it in the ground?

 

^too late for that

perhaps trump will be touting a crude-oil enema to protect you from the C-19 virus...

 

 

So WTI closed today at something like negative $30 a barrel.  Does that mean if I find a whole bunch of oil drums and other containers, they will ship me the oil and pay me $30+ per barrel to hang on to it?

It does mean that except nobody is going to actually pay you to do that. They would take legal action to get out of the deal as it would cost them to much. This is all market driven by hedge and other funds. It basically means there is no market for that oil currently.

perfect storm about to hit the red-oil states...

Build the wall with full oil drums.

Idiot

So oil prices are back up a bit today after Trump said he ordered the Navy to "shoot down" any Iranian boats harassing US warships in the Persian Gulf.  Iran did send a bunch of small boats to harass American warships earlier this week.   Could it all have been a set up to create artificial tension and raise oil prices?