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For May futurecontracts. The cost of a barrel of oil is $20. That just reflects that nobody wants to hold a contract for May delivery of crude oil because, well, no one knows where to put it. Not holding a bunch of oil contracts it looks like a bit of an overreaction... on the other hand I'm not worrying about where I'm going to store a bunch of crude oil in May with storage capacity quickly filling. Refineries don't want it, at least not all of it, and where's it go? Do you just leave it sitting in a super tanker. They're probably going to charge you for that and it won't be cheap. So people are willing, desperate, to unload future contracts and nobody wants them.
I mean, it's kind of funny because of how much speculation there is in any derivatives market from people who won't ever take delivery versus industrial uses hedging on prices who will but it's an actual problem as well.
Crude oil just sold for SEVEN CENTS a barrel. Some trader did it for the entertainment value, just like the guy who was the first ever to buy crude for $100 a barrel. He also did it for the entertainment value. Then it went to $152 a barrel. They just discovered a good size oil field right next to the Keystone Pipeline. Tell me that was not known before the pipeline was built.
Do you watch your cute little garden windmill in a hurricane, too?
(I can't think of anything more useless and pointlessly agitating than watching a ticker these days. Those terminally given to muttering my precious, my precious are exempted.) I'm not sure looking at daily closes is meaningful, either.
Nope, just looked out of habit and saw the price. That 15 cent per barrel price certainly got my attention. This isn't just a hurricane, it is a cosmic storm.
When the price of a commodity used around the world changes 35% in a matter of hours, I think it’s fair to ask what the hell is going on?
So since gas hasn't dropped proportionately in response to this, is it safe to say that someone will be posting record profits (or at least have record margins) this quarter?
That's quite unusual. I live in the South and it was pretty warm here during the winter. The weather is finicky right now. Will be 70 one day, 90 the next day, and then 50 the next day.
Oil and gas may be getting cheaper but we have no where to travel.
This is true. When gas was $4+ a gallon, there was massive pain. I've been seeing gas at $1.22 to $1.50 or so lately, which is amazing.
I never thought I would see oil as a negative. I remember in 2008 when it was thought oil would go to $200/barrel.
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