ness Posted April 20, 2020 Posted April 20, 2020 Not specifically virus related, but crude oil is getting slaughtered this morning. Down $6.68 to $11.59: Notice that high of around $64 in January. That's down 82% John
N9BOW Posted April 20, 2020 Author Posted April 20, 2020 5 minutes ago, ness said: Not specifically virus related, but crude oil is getting slaughtered this morning. Down $6.68 tp $11.59: Notice that high of around $64 in January. GeoPolitics... The dollar, reserve currency, petro dollar.. this is a war on the old guard... new hegemony being sorted out.. who will win??? China, Russia, SA.... We will see several smaller over leveraged oil co. go bankrupt with that price and those will in turn take us out of the leading producer roll... But what do I know... history in the making.
ness Posted April 20, 2020 Posted April 20, 2020 26 minutes ago, N9BOW said: GeoPolitics... The dollar, reserve currency, petro dollar.. this is a war on the old guard... new hegemony being sorted out.. who will win??? China, Russia, SA.... We will see several smaller over leveraged oil co. go bankrupt with that price and those will in turn take us out of the leading producer roll... But what do I know... history in the making. Don't think the damage will be restricted to smaller companies. And this will likely cause collateral damage in companies in the supply chain, banks, etc. N9BOW 1 John
N9BOW Posted April 20, 2020 Author Posted April 20, 2020 3 minutes ago, ness said: Don't think the damage will be restricted to smaller companies. And this will cause collateral damage in companies in the supply chain, banks, etc. Absolutely.. the banks have their own problems though and this will not help... There's a 💩 meets fan moment on the horizon.... That light at the end of the tunnel is a train.
Mitch f Posted April 20, 2020 Posted April 20, 2020 17 minutes ago, ness said: Not specifically virus related, but crude oil is getting slaughtered this morning. Down $6.68 tp $11.59: Notice that high of around $64 in January. That's down 82% So what are the indicators that make you think this is not virus related? "Honor is a man's gift to himself" Rob Roy McGregor
ness Posted April 20, 2020 Posted April 20, 2020 9 minutes ago, Mitch f said: So what are the indicators that make you think this is not virus related? I'm cautious about drawing conclusions that I don't have specific knowledge or understanding of. I admit it's a flaw of mine Deadstream 1 John
Mitch f Posted April 20, 2020 Posted April 20, 2020 3 minutes ago, ness said: I'm cautious about drawing conclusions that I don't have specific knowledge or understanding of. I admit it's a flaw of mine You sly devil! 😂 ness 1 "Honor is a man's gift to himself" Rob Roy McGregor
Flysmallie Posted April 20, 2020 Posted April 20, 2020 22 hours ago, semble said: Buddy of mine played a round. One person per cart and he said they had pool noodles around the pins so you didn't have to touch the flag. This was in NC. They are doing it in Springfield too. Saw it on the news last night. I have never played golf but can appreciate the love of that sport.
Mitch f Posted April 20, 2020 Posted April 20, 2020 Sorry double post "Honor is a man's gift to himself" Rob Roy McGregor
ness Posted April 20, 2020 Posted April 20, 2020 5 hours ago, Mitch f said: So what are the indicators that make you think this is not virus related? So, having read a little on this since then, and seeing something historic unfolding, I'll comment. Of course the oil situation has been messy for a few months now, starting with OPEC and Russia dumping oil into the market. Demand is also lower recently due to the economic slowdown caused by the virus. But today's collapse is very interesting and very different. There's more than one price for oil out there. The most closely followed price for oil is the West Texas Intermediate crude future traded on the New York Mercantile Exchange. The current futures contract expires tomorrow and traders have to settle up -- money versus crude -- to be delivered in May. But guess what? There is a huge shortage of storage capacity for oil right now (oil glut, lack of demand), so traders are bailing out of the May contract so they don't have to take delivery of crude they can't store. Price for May crude right now? -$3.34. Yup, negative. I've never seen anything like this. BTW, the June contract is trading at $21.80. The textbooks tell us the difference between a commodity price in month one and month two is the cost to store the commodity for a month. Not the first time the textbooks have let me down. Gonna be interesting to see how this plays out. edit to add: Now it's at -$6.69 edit to add: Now it's at -$37.59 at 1:39. This isn't sposta happen John
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