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Oil/Gas stocks of companies that have good (relative term today) balance sheets, to name some. Just like no one wanted bank stocks in 2009, look what you would have it you had bought them then. I am NOT saying to load up, but just pick away.
Have already done that, pre c-virus. When everyone was freaking out about their portfolios, I went and bought more. It was like a 2 for 1 sale. I'm limited on how much I can do, so I'm not going to get wealthy instantly when things pick back up, but I do like "sales". I have a long ways to go before I retire, so nabbed up what I could while I could.
If those prices go lower, well, then I guess I'll be putting that stimulus check to work.
As our local news presenter pointed out last night, he's driven a whole 8 miles since this started.
They're literally swimming in gasoline and the downstream folks are totally screwed.
The downstream folks would be you, the gas stations and the storage depots, unless you live in Kentucky and a handful of other States.
Why?
It's almost May 1.
What happens May 1? State laws mandate the use of reformulated gasoline to cut down on smog during the Summer.
EPA regulations bar mixing reformulated gasoline with unreformulated gasoline.
It could get ugly.
Remember that gasoline prices normally spike around that time because of a shortage: gas stations and tank farms are draining their stocks of unreformulated to make room for reformulated. That creates a shortage, and then it takes all 16 of your refineries about a month to switch over to produce reformulated and increase the supply level to bring prices down.
I'll have to make a few phone calls.
If I'm running a tank farm, I am not going to take a blood-bath and dump 3 Million gallons of unreformulated gasoline and lose my shirt and the farm.
Except, I can't take any reformulated, because all the tanks on my tank farm are filled to the brim with unreformulated.
You can rent tank space. You surely can. You can rent tanks to store any liquid chemicals you want except there isn't enough rental space in America to hold a Summer's worth of reformulated gasoline.
The refineries can make reformulated, but there's no place to store it and where you can store it is distant which increases delivery costs, so don't be surprised if gasoline is $3.50-$4.50/gallon this Summer.
I'd venture to guess some governors or State legislatures will waive the law this Summer. Not gonna be a whole lotta travel anyway so it's not like smog would actually be a problem.
Expect to see multi trillion dollar bailouts in the US and a severe crisis in Russia, and a wave of uprisings in the ME.
I was thinking the same thing, this will create enormous problems to those countries like Russia, Venezuela, Kuwait and Saudi Arabia that are so dependent on oil. This is going to create a lot of unrest throughout the world just from the drop in oil prices. Texas, Oklahoma and North Dakota and all the refiners, transport are going to take a large hit.
U.S. crude oil futures collapsed below $0 on Monday for the first time in history, amid a coronavirus-induced supply glut, ending the day at a stunning minus $37.63 a barrel as desperate traders paid to get rid of oil.
Imagine driving down the road and gas stations are offering you money to get gas.
I don't drive my Vette enough to make it worth while. But gas should have never been over 80 cents a gal ever. Bush 1 and his failed war back in 1991 gave us the highest oil prices and then Bush 2 with his 2 failed wars gave us even higher oil prices in 08.
I don't drive my Vette enough to make it worth while. But gas should have never been over 80 cents a gal ever. Bush 1 and his failed war back in 1991 gave us the highest oil prices and then Bush 2 with his 2 failed wars gave us even higher oil prices in 08.
Why would you think that when demand drives the price, what would lock it into 80 cents when the entire world has changed enormously in 30 years.
This is what happens when you shut down the country....still think we should keep it shut down? This will only get worse if things don't open back up soon.
Seriously, do you think we are the only country shut down? What an idiotic statement.
That’s great. People have been screwed by this industry for a long, long time. They can kiss my ass.
You realize getting oil prices this low was OPEC's goal to bankrupt the US industry right?
Oil prices this low are BAD for US energy independence.
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