The price of oil

Not reflected in the pump price not now and won't be in a months time.

I read somewhere a week or so a go it could hit nearly zero, too much of it and no ones using it.

The price you are quoting is for WTI and it continues to dive, $4.94 as I type.
The main factor creating the fall is the lack of storage capacity.
Production is outstripping usage, and nobody wants to pay to store oil that will go nowhere near a refinery any time soon.

Brent Crude is also falling, but currently trading at $26.36

WTI closed 2019 at $61 and was $18.27 at close of play on Friday.
Brent closed 2019 at $66 and was $28.08 at close of play on Friday.

Our local Shell/Budgens sell more out the shop than fuel they were telling me.

Oil futures negative!
They will pay you to store the oil

A history of Brent prices since 2006.
Brent is typically priced higher than WTI, the differential typically being no more than a few dollars.

Of course, petrol is not the only product produced from crude.

Apr 20, 2020 -- 6:06PM, jucel69 wrote:

Oil futures negative!They will pay you to store the oil

How are face mask futures shaping up

Use car once a week to go Shops , gone from a oner a month petrol to a score

If its $4.49 a barrel could you buy a thousand barrels without the oil and sell the empty barrels as scrap metal ? - or am i missing something

Wooden

Still not seen under a £1 yet at the pumps
Should be around around 70p

Russia Middle East probably done a deal

$10 per barrel. Will I see petrol at 66p per litre on forecourts soon? I hope so.

58p per litre is fuel duty

Why will won’t get the rewards

Filling stations make tiny margins on petrol sales, drive offs kill them.

If stays low, with things as are could see an Increase in that Duty to try claw some money back

A no-brainer winner if buying and holding. A multiple return on capital is assured once lockdown is relaxed.

Petrol at present could be knocked out for 30p a litre and their still wouldn't be any takers..the Government and this ridiculous lock down have made sure of that.

Apr 20, 2020 -- 6:37PM, impossible123 wrote:

A no-brainer winner if buying and holding. A multiple return on capital is assured once lockdown is relaxed.

holding where?  You have to take delivery of the oil.  The people who bought after this

Just spoke to my friend MBS (Crown Prince) of Saudi Arabia, who spoke with President Putin of Russia, & I expect & hope that they will be cutting back approximately 10 Million Barrels, and maybe substantially more which, if it happens, will be GREAT for the oil & gas industry!

— Donald J. Trump (@realDonaldTrump) April 2, 2020


are desperate for anyone to take delivery of the oil they bought.

Probably a mug question but how does one go long oil?

I see contracts for 3 months max.

you buy shares in bp etc

Other than stocks, etfs, there's no way right? Unless I got my own tankers.

buy the oil, store it, ...might be a problem there though.

price will soon be quoted for june delivery not may as in todays price

dont buy any - the way things are going they'll end up as barrels on your doorstep.

I sold some a few weeks ago :)

there is nowhere to store it, thats why it's 17c a barrel

^^

i think its 22 dollars a barrel for june delivery at the mo.

Was 22 in the morning too. I thought it would go down. If no one is buying for may why would they buy for June?

May contract expires today if Im not wrong so this is not that dramatic. I had decided to get involved in oil a week ago and still clueless. Just holding Shell shares for now.

I think they have in the past been able to reverse pump oil into disused oilfields, but that's neither here nor there, either is buying avarrel of oil,its crude, stop being silly. The big thing I have taken from the "agreements" is they all agree to reduce production and then try and profit by doing the opposite.Funny old world. We are at a crossroads and this so called rare resource seems to be getting less rare by the hour.Frightening to think how much there actually is,let's get on our bikes and see if we get get it into negative value..

Fkin -11 how does this **** work? Do we get paid to take in oil? Empty the swimming pool time?

bobby ewing would just park his ship.

jr would have some dirt on the refiner so they would take his oil...

you have to pay for delivery as well

-23

I think the issue is that shutting down production costs producers a huge amount, so they want to keep pumping but have nowhere to store it.

WTI finishes on -$37...madness

so how much to bail the oil companys out

Can one not buy futures/contracts in oil? Buy now at about $8/10 and sell say 12 months' time or whenever before. Is that not how futures/contracts work?

I meant Brent crude. It's about $25 per barrel.

I know someone in oil and he's not doing well.

He's a sardine.

Venezuela

Nigeria

Both on cannibal watch

The fat bastards in Kuwait will only be able to have 5 pizzas and 3 McDonald's a day now

The jocks independence plans gone for a Burton too
Wee Jimmie krankie will be soiling her granny pants

Some oil producing countries can wait it out others are gonna suffer greatly

Scot Nats will be out clapping their thanks and gratitude to us for saving Scotland going bankrupt

The Saudi and emirati people might have to work for the first time ever!

Too bad Russia can wait it out.

Apr 20, 2020 -- 8:18PM, trilby22 wrote:

Scot Nats will be out clapping their thanks and gratitude to us for saving Scotland going bankrupt

Very quiet on the forum aren't they!

Incredible scenes!

https://markets.businessinsider.com/commodities/oil-price?type=wti

Oil (WTI) Commodity
-30.40
-48.52 (-267.77%)

Never good when oil has crashed usually means a war is coming

no country can wait it out at this level

China in the crosshairs imo, Sontar

Apr 20, 2020 -- 8:19PM, SontaranStratagem wrote:

Never good when oil has crashed usually means a war is coming

I knew you would put a positive spin on it ss

Hit ZERO Dollars per Barrel in the USA.

Oil Producers, effectively,  PAYING Customers to take the Oil away - as they cannot store it.
--------

Forecast in this article - TWO MONTHSA AGO ..

Here’s Why Oil Could Be Headed to $0

By Chris Matthews

February 24, 2016 6:51 PM GMT

Here's What Falling Oil Prices Means for You - And the global economy


You don’t need to be an economist to know that the oil market is bonkers these days.

The price of oil has fallen roughly 70% over the past 18 months to a recent $32 a barrel, with many analysts believing the all-important commodity has further to fall.

But could oil prices fall all the way to zero?

Yup, at least according to one analysis.
-----------

Sheikh Mo, Qatar and Saudi Arabia - not to mention PUTIN - beginning to brick it.

China are sadly maybe Iran though

But war with China means there's a draft coming and rationing

Not been a good few years for the Venezuelans

Oil (WTI) Commodity
-37.45
-55.57 (-306.68%)

The thing is though we are way overdue a major war, the others since WW2 are not counted as major events

We are due a big one

Yup, something's afoot all right - and it ain't good.

Man City fans best start looking for a new team to support.

The virus is just not passing the test

Something else is brewing for sure, and Donald Trump is majorly p***ed with them

Russia/China/Iran?

Its going to wipe out half the planet if it happens

Starvation as well will kill millions more after that

That 500,000,000 goal would be on if this kicks off

So if you turn up at the petrol station tomorrow they give you £50 to fill your tank?

at the last oil price crash in 2008 crisis ,they said it would be ok back to 100 dollars  a barrel in no time, not many of those who said it will be alive to see that event happening,

No one answered why June contract trading at 22. If oil companies are paying people to take away their oil, who is paying 22 dollars to the oil companies to take away that oil?

Norway better have a rainy day fund.

Apr 20, 2020 -- 8:24PM, trilby22 wrote:

Yup, something's afoot all right - and it ain't good.

This feels like the start of some kind of existential threat.

We need super intelligence to kick in very soon from AI to save us...... but then we are at the mercy of robots
All in all WE'RE DOOMED IT TELL YA

its middle men buying the contracts and getting stuck with it.

We are at the mercy of a bunch of people now. Whoever they are. I should have joined illuminati when I had the chance.

will the uk government feel ashamed/embarrassed charing high taces on a commodity that's basically free, ,

they might start taxing fresh air next ,

hope not with all the cars,planes grounded its very fresh at present

flights still super expensive

kids on the ground always no 1st,saw 2 last night with a hose and jerrycan putting petrol back in to a car

Apr 20, 2020 -- 8:28PM, 1st time poster wrote:

at the last oil price crash in 2008 crisis ,they said it would be ok back to 100 dollars

Some of you guys need to read up on how the oil futures market works

A couple of weeks ago my local garage's diesel price went from 117.7p to 109.7p overnight.  I filled up.  It has remained at 109.7p since.

No need to cry then was there.

Tbh I had not realised we had already entered negative territory already,oil price long been a law unto itself but suspect the way its been traded over the years, sold whilst still in the ground and in transit  has created the situation. Also so many pipelines all over the world no one really knows where its coming from or where its going, take Iran for example no doubt they will be pumping via other routes, they are all dodgy. As for petrol and oil, not really that linked imo, gas price also very ****, and that's a very big thread in itself although no doubt as events in the next potus race warms up we will find out some of the grubby details.Tbf to Scotland you can't really say they are oil centered, rather unique in that sense but yea oil is/was  a big big  part of their very ill thought out economic plan, you can thank little fat boy the  oil economist for that. Anyway meanwhile back at the ranch.,how do oil futures work, a think that was the question Barrowboy, please explain...

Geez need to stop being so wordy

Be just my luck to inherit an oil well from a long lost relative & find I owe a $1million dollars

dont worry you would get bailed out

An odd paragraph break here and there would make your posts more user (and eye!) friendly imo breadnbutter

the oil futures are people gambling on the price of oil going up or down by a certain date,they buy the oil but dont really want it so today they had to get rid of it.

Anyone got an opinion on how low petrol prices might drop to?

Really gutted a filled up b4 lock down, 55L@£1.18

Problem with punctuation is  rather deep-rooted with socia - ecomic connotations T22, the sentences and parajiraths can't be done on the phone, it won't do it .                   Sorry CC .Maybe thars a button that needs flicked or summit, damned knewfandagled gadget.

This crash only relates to WTI Crude Oil futures contracts due for delivery in May. Whoever is the holder of the contract tomorrow has to take delivery of the oil (in theory). It doesn't relate to any other oil anywhere else or a futures contract for delivery any other time, that's why the June price and other oil prices are different. WTI isn't used over this side of the world, only America really. We use North Sea Brent Crude over here.

The oil producer won't be paying the holder $37 to take the oil. The oil producer was paid based on the market price the date the contract was agreed. The buyer under the contract will be the one paying you $37 to take delivery on his behalf by taking ownership of the contract from him. The US storage facility is full and normally you'd offload these contracts to a refinery at a fair price but demand is down so refineries don't want any and there is thus a premium on storage and the $37 is compensation for that. Supply is up, demand is way down since the virus and now storage is down/full too. It should have a negative effect on the oil price generally as it's near capacity elsewhere in the world too and demand doesn't look like it will increase too much in the next few months anywhere. You could also look at it as a massive glut in supply effectively.

Prices have went sky high following the shutting of Garden Centres and Council dumps. Scandalous imo.

The US as a nation might be the one best positioned here. Shale oil production can be switched off and restarted more readily than conventional production.

Sure, the US firms currently producing the shale oil will go bust, and US banks will lose money, but that's capitalism for you. Newcomers will move in the moment oil prices rise again.

If oil prices don't rise again, then all well and good. The US gets cheap oil from the rest of the world, while retaining its own reserves. What the US always does with natural resources.

Thar all showing off wi parajiraths now

(Bloomberg) -- Oil is trading below $0 a barrel across the U.S. after the futures market suffered its worst price crash in history.

Barrels from the country’s biggest shale plays are pricing in negative territory, with buyers such as Enterprise Products Partners LP asking to be paid for taking crude in the Permian Basin. Enterprise offered negative prices for all grades, including minus $43.68 a barrel for West Texas Sour.

The meltdown follows the worst day of trading in U.S. history, in which New York oil futures plummeted more than 300% to close at an unprecedented negative $37.63 a barrel. The market was already under pressure as storage across the country fills and the coronavirus pandemic obliterates energy demand.

Bakken crude from North Dakota was worth minus $37.63 a barrel, equivalent to the futures price, according to data compiled by Bloomberg at 3:19 p.m. in New York. That was higher than Alaska North Slope at minus $46.63. Not every grade suffered as badly. On the Gulf Coast, Light Louisiana Sweet was worth $5.73 a barrel, a whopping $41 premium to futures.

Bakken oil producers, landlocked and dependent on pipelines or rail to move their crude to market, are especially vulnerable to the supply glut. With refineries in the U.S. Midwest cutting back production as people stay home and isolate, storage tanks are rapidly filling up.

The biggest U.S. storage hub at Cushing, Oklahoma -- the delivery point of the WTI contract -- has limited room after the volume of oil there jumped 48% to almost 55 million barrels since the end of February.

Prior to Monday’s crash, some lesser known crude streams had already sold at negative prices. Late last month, Mercuria Energy Group Ltd. bid negative 47 cents a barrel for Wyoming Asphalt Sour.

Apr 20, 2020 -- 11:21PM, breadnbutter wrote:

Problem with punctuation is  rather deep-rooted with socia - ecomic connotations T22, the sentences and parajiraths can't be done on the phone, it won't do it .                   Sorry CC .Maybe thars a button that needs flicked or summit, damned knewfandagled gadget.

J/k Bread Does the ENTER key not create a new parajirath on a phone and what's one of them anyway - kinda like a jihadi paragraph?

(Bloomberg) -- Oil’s collapse is deepening.

Just a day after U.S. crude futures for May delivery plunged below zero for the first time ever, June futures plummeted 43% to close below $12 a barrel in New York. A massive supply glut brought on by the pandemic and a worldwide shortage of storage space have touched off a relentless rout that has shifted the entire forward curve for oil.

The meltdown spreading across global oil markets has already wiped out tens of thousands of jobs and frozen billions of dollars in capital spending. Its deflationary effect threatens to further cripple economies around the world already reeling from coronavirus-fueled lockdowns. Storage tanks, pipelines and tankers have become overwhelmed by a vast oversupply brought on by an unprecedented plunge in global fuel demand.

Oil is a “dangerous market to trade in right now,” said Pierre Andurand, founder of Andurand Capital Management LLP, in a Bloomberg TV interview. The market needs oil production to fall immediately for prices to recover, he said.

The price crash spilled into the ETF market, with the biggest crude-tracking fund, the United States Oil Fund LP, moving some of its WTI contracts into later months, according to a regulatory filing. The spread between June and July U.S. West Texas Intermediate crude futures rallied more than $1 a barrel on the move.

Oil ministers from the OPEC+ coalition held an unscheduled conference call on Tuesday to discuss the collapse without settling on new policy measures. The Texas Railroad Commission, meanwhile, opted to put off a decision on whether to impose oil-production quotas.

In London, the immediate contract for Brent crude was at the biggest discount to the following month in data since 2008. U.S. marker WTI’s June contract was halted three times early in New York to manage the volatility.

“If you start to look at the actual supply-demand situation for oil, it’s not so obvious that by the time those contracts expire, the storage situation around Cushing will be very different than what it is in May,” said Martijn Rats, Global Oil Strategist at Morgan Stanley, in a Bloomberg Radio interview. “The prices of these futures will need to connect to the physical reality, and they are likely to crack lower.”

WTI for June dropped 43% to $11.57 a barrel in New York. The thinly traded May contract closed at $10.01 a barrel.

Brent crude futures for June slumped 24% to close at $19.33 a barrel.

An American Petroleum Institute report showed that U.S. crude stockpiles rose 13.2 million barrels last week, according to people familiar. Supplies in Cushing, Oklahoma, rose 4.91 million barrels, according to the report.

The collapse is reverberating across the oil industry, with prices trading below zero across America on Monday. WTI Midland in Texas -- a flagship marker for the U.S. shale industry -- was at -$13.13 a barrel, while crude in Alaska was at -$46.63.

There are signs that these stunningly low prices are here to stay as tanks across the globe fill up. Royal Vopak NV, the world’s biggest independent storage company, said almost all of its space is sold.

Crude stockpiles at Cushing -- America’s key storage hub and delivery point of the WTI contract -- have jumped 48% to almost 55 million barrels since the end of February. U.S. nationwide inventories are estimated to have increased another 14 million barrels last week, according to a Bloomberg survey.

The Dated Brent benchmark, a global reference for nearly two thirds of the world’s physical flows, plunged to $13.24 a barrel on Tuesday, its lowest since 1999, according to price reporting agency S&P Global Platts. That means that key European and African crude streams, including Urals from Russia and Bonny Light from Nigeria, would sell now under $10 a barrel, as they trade at a discount to the Dated Brent benchmark.

FairFuelUK said average prices of a litre of petrol and diesel should be 98p, 106p

But they are instead 110.05p and 115.13p, according to the RAC Fuel Watch's data