Oil has crashed. How do we take advantage?
- Thread starter TheAlias
- Start date
I Was Just Asking This
Was just seeing this. May futures are actually negative...meaning oil producers are paying "buyers" to take it off of their hands. Apparently they're running out of space to store it. Crazy shit.
I really think it will take a while for this to rebound. Oil was down even before coronavirus. I'm too scared to play in oil futures. Good luck to those who want to chance it.
I really think it will take a while for this to rebound. Oil was down even before coronavirus. I'm too scared to play in oil futures. Good luck to those who want to chance it.
Whenever Trump brags about brokering deals. Just know it ain't about nothing.Wasn't Trump just bragging about basically brokering a deal on oil between the Russians and Saudis?
e.g. NK nuke deal..
Wasn't Trump just bragging about basically brokering a deal on oil between the Russians and Saudis?
Well, I just found out we had some bad barrels... bad barrels left over from the Obama Adminstration..bad barrels.. bad barrels.. ruined all the oil...bad barrels...who would have ever guessed it? But we're working on better barrels now. But it was a really bad thing Obama did... with these barrels.. ruined all the oil.
This oil price crash isn't as bad as it seems — here's why
The contract for May delivery of U.S. crude dropped more than 100% on Monday to a record low, but longer term, things might not be as bad.
This oil price crash isn’t as bad as it seems — here’s why
PUBLISHED MON, APR 20 20202:19 PM EDTUPDATED 14 MIN AGO
"A worker prepares to lift drills by pulley to the main floor of a drilling rig in the Permian basin.
Something that’s never happened in the oil market is happening today: Negative prices for oil contracts.
While many people may see this and think the overall price of oil is negative, there’s nuance. The short answer is that no, not all oil is free.
The picture in the market is not as bleak as this eye-popping headline would suggest.
Futures contracts are tied to a specific delivery date. Toward the end of a contract’s expiration date, the price typically converges with the physical price of oil as the final buyers of these contracts are entities like refineries or airlines that are going to take actual physical delivery of the oil.
Futures contracts ultimately are contracts for physical delivery of the underlying commodity or security. While some people in the market speculate on the contracts, others are buying and selling because they have use for the commodity itself. Near the contract’s expiration, traders just start buying the next month’s futures contract. Those who stay in the position to the final day are typically buying the physical commodity, such as a refiner.
The contract that fell more than 100% on Monday is for May delivery, and it expires on Tuesday. With the coronavirus pandemic leading to unprecedented demand loss, and with storage tanks quickly filling up, there is no demand for this oil contract expiring Tuesday.
That’s why it turned negative, meaning producers would pay to get this oil off their hands because there is no one that needs that oil this week with the country shutdown.
Futures contracts trade by the month. The contract for June delivery traded 16% lower at $21.04 per barrel.
So after that contract expires on Tuesday, oil will be back above $20.
The U.S. Oil Fund, which tracks the price of various futures on oil, fell just 10%.
Trading volume was also relatively thin in the May contract. According to data from the CME Group, volume stood at roughly 126,400. By comparison volume for the June contract was nearly 800,000.
Again Capital’s John Kilduff attributed the plunge in the May contract to the fact that “the physical oil market conditions are a disaster, with growing concerns about finding available storage.”
Longer-term, he said the picture looks brighter.
“The higher priced, longer-dated futures contracts are indicative that of the market expecting some level of clearing in the cash market over the course of the next several months,” he told CNBC. “Given the rapid decline in the U.S. oil rig count and the expected cutback by OPEC+ members that is a reasonable assumption.”
That said, he noted that as the subsequent contracts reach expiration, they could engage in their own “death march down towards the super-low cash prices.”
UCO is a proshares oil stock.
USO is also a good one.
But it can go negative so becareful.
NAT and TNP are shippers and right now their vessels are being used to store oil.
So these are short term play, but becareful.
Oil futures contracts.
Just becareful guys.
Only use money you can lose if this goes sideways.
ALot of funds blew up today.
USO is also a good one.
But it can go negative so becareful.
NAT and TNP are shippers and right now their vessels are being used to store oil.
So these are short term play, but becareful.
Oil futures contracts.
Just becareful guys.
Only use money you can lose if this goes sideways.
ALot of funds blew up today.
Lmbaoooooo
This headline was funny
www.rawstory.com
CNN’s Anderson Cooper stunned as oil prices drop below zero: ‘I'm not even sure what that means’
U.S. oil prices have dipped below zero for the first time on record thanks to an oversupply of oil that left producers without any space to store it amid the coronavirus outbreak, The Guardian reported."The price of US crude oil collapsed by more than 105% to -$2 per barrel in a matter of hours...
www.rawstory.com
Didn't Trump wanted to sell the oil in the Strategic Oil Reserve a few months ago?
There is a stock I bought and held for a year maybe 4 years ago. The company is called Transocean. What they do is rent ocean drilling rigs to big oil companies. I didn't make shit on it, maybe a couple hundred bucks if that. But I was swing trading, so I never made huge payoffs, just tried to keep a stream of small wins. They were priced as high as $150 a share back in 2006. Today, they are $1.15 a share. They'll likely never see the numbers they saw in 2006 again, as fossil fuels have far more competitors now with hybrid technology, wind and solar having taken off to some degree. But up to about ten dollars is not unreasonable if things get back to a somewhat normal. Too iffy for me at my age, but for a young working guy to just toss 1K at it for fun, who knows, it may pay you back 8 or 10 thousand. But they also may slide to the depths of hell!
It’s mainly has to do with futures expiring in June.
Good for us
What they did
Saudi Arabia and Russia flooded the world with excess supply. That basically caused oil prices to collapse to levels tha tmake it impossible for US shale oil companies to make money. This crash will basically cause hundreds of E&P companies to file for bankruptcy next year. Expect tons of layoffs before the end of this year.
Basically that's what I'm going to do because we need oil and we're going to need it for years to come.
I'm listening.... tell me more.....
Wow. Cant even laugh because its so accurate.
And The continue Fuckery is going to happen with oil because the demand of it is dropping like a rock also a lot more people are buying electric cars.
I wouldn’t be so sure about that
renewable energy (wind and solar)