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Now we can end subsidies to the windmills and solar companies. Use that money to help our oil companies. In the meantime, lots of cheap oil and gas for us and our other industries.
Why would we do that??? Oil producers have been ripping us off for over half a century and we are supposed to save them now?
Scary times. Just to be on the safe side we filled up every car and the motorcycle, all lawn equipment and the tractor, and all our spare gas cans. We’re not using much right now, but we *could* see shortages popping up. Be prepared.
Let the oil companies fail who spent too much money and didn't save for a rainy day when times were good. The govt shouldn't bail out crappy companies who didn't prepare and shore up their cash. Companies facing bankruptcy should pull themselves up by their own bootstraps just like how conservatives say the individual should.
Hopefully this also accelerates the demise of oil in the US. We should be driving electric vehicles anyway. Saudi Arabia and Russia want to stick it to US companies, but poetic justice may come in the end over the long run where we completely seen ourselves off of oil all together, no matter of it is domestically or foreign produced. We will all be driving EVs within the next 20 years. Oil has already been a crappy investment over the last several years, and capitalism is moving preciously away from oil and fossil fuel investments. Current events are only speeding up what is inevitable.
It’s simple supply and demand. The market is flooded. Trump’s attempt at propping up prices failed.
Again, you clearly don't have an understanding of oil futures contracts, and are apparently too lazy to read what has been provided on the past page
If it was simply supply and demand, oil futures contracts for Wednesday wouldn't be over $20 a barrel today.
I'll re-post it for you:
Quote:
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.
. . .
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 West Texas Intermediate crude contract that fell more than 100% on Monday is for May delivery, and it expires 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 crude this week with the country shutdown.
Futures contracts trade by the month. The contract for June delivery was 16% lower at $21.04 per barrel.
So after the May contract expires on Tuesday, oil will be back above $20.
Shortages? You do realize the problem we have right now is a massive SURPLUS, don't you?
A surplus of oil isn’t the same thing as a surplus of gasoline. At these prices gas production will shut down, and once the already-refined fuel is gone, shortages begin.
We DO have a massive surplus of gasoline, as well. Not sure if you are aware, but most people are not driving cars as we are forced to stay in place. Also, not sure if you are aware that gasoline IS made from oil.
You are welcome for the free education. You like free things, I assume.
Slow your roll, guy. You’re being unnecessarily rude here. I simply posted what my response was based on potential impact. You’re really reaching from there.
We DO have a massive surplus of gasoline, as well. Not sure if you are aware, but most people are not driving cars as we are forced to stay in place. Also, not sure if you are aware that gasoline IS made from oil.
You are welcome for the free education. You like free things, I assume.
But they aren’t equivalent surpluses. You have to refine oil to make gasoline, and oil has many uses. They aren’t going to refine and transport gas if the demand isn’t there.
Expect to see multi trillion dollar bailouts in the US and a severe crisis in Russia, and a wave of uprisings in the ME.
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