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Oil drops most since 1982


Pitcher
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1 hour ago, Rochester said:

This crash in oil prices, is revealing the weakness of the ME. They are mostly 1 product countries. All they got is bananas and the world is not in the mood for bananas. :bananacamel:


Bingo,  Rochester you are a smart man

 

Texas Shale changed the game forever.  Remember Drill baby Drill.  They did and OPEC can go pound sand. 

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1 hour ago, Adam Montana said:

Oil plunges 321% into negative territory for the first time ever as demand evaporates

 Apr. 20, 2020, 05:39 AM
  • Oil prices plunged into negative territory to a record low on Monday as uncertainty mounted around storage of excess supply.
  • WTI crude oil futures expiring in May plunged 321% to close at negative $40.32 a barrel


Holy Ship ! Oil Is Now Worth A Negative Value ! :blink: 

 

 

I’m Not Quite Sure If This The ‘RV’ That We All Imagined Where A Dinar Would Be Worth More Than An Entire Fleet Of Tankers ! :o 

 

image.jpeg.0bfa12d828b397460bcce2fa28cb896b.jpeg
 

:D  :D  :D 

 

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Hey Pitcher - Watch Me Make A Doctor Appear ! :cigar:

 

:D  :D  :D 

 

 

Now Watch These Mindless Middle East Misfits Make An Entire Oil Market Disappear ! :o 

 

:lmao:  :lmao:

 

 

An analytical vision ... the collapse of oil markets in the North American continent


Monday 20 April 2020


alsabaah-35102.jpg

 

Dr. Appearance of Mohamed Saleh

 


In recent years, the US market has played a dual role as an oligopoly sellers and monosopeny buyers market at the same time, especially during the past ten years gradually, as the United States consumes about 19 million barrels of oil per day and represents 19% of the world's production alone and is the largest oil consumer in the world . It is one of the largest producers of oil in the world, with a production capacity of about 13 million barrels, whether from shale or conventional oil. After the US oil production of 13 million barrels per day, as we mentioned, contributed to the shift to a net buyers market in parallel with the rebel sellers market, which is the Kingdom of Saudi Arabia, in flooding the market with approximately 12 million barrels per day, the entire oil world entered into a fatal price war and then turned the oil market to Depression until breaking point.

It is two chances of victory, the first is that the low demand for world oil, which is 30% less than the current supply, and the second is an additional surplus of 300 million barrels capacity in the futures market, as this market formed the symbolic or forward oil camp that led the night’s collapse through a coup The oil futures market, as all speculators turned once to the short position, i.e. sell immediately for futures contracts with the hope of cheaper purchase of the contracts themselves, but at a low point below the lowest break-even point in the world that did not lead to the collapse of the entire oil market, so the final buyer of the surplus is Su United States, which captured the future oil contractscollapsed and Ttviha and turn them into an immediate market.

In conclusion, it is the opportunity of the last winner who reaped the losses of the entire world, for the winner is the speculators who have stocks of crude oil in the United States of America and according to a strategy the oil market will remain a buyers market forever.

LINK

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Bingo,  Rochester you are a smart man

 

Texas Shale changed the game forever.  Remember Drill baby Drill.  They did and OPEC can go pound sand. 

 

Evening ( UK time ) gents, i am slightly puzzled, whilst i acknowledge support for each of our Countries resources & the financial benefits they bring, as most of you here are i assume invested in a Country in the ME, who are part of OPEC ( illegal or not ) i would of thought higher more stable world oil prices are very much of interest to you all, especially as Iraq's whole economy is dependant on oil.

Best Regards TE. 

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1 hour ago, Pitcher said:


All planned, new stuff will replace the Petro dollar. Sit back and enjoy gas for 1.30 a gal.  What I paid today. Wow. 

 

Yes, I think it's all planned too, but I'm thinking of the Dinar.

If oil is their main source of income, they are bankrupt.

When the IMF takes away  all their debt, they still have no source of income.

So how how do they raise the price of the Dinar?

Looks like they are going to go by the amount of gold and natural resources they have.  Hopefully!!!  We will be GOLDEN if that happens.

 

But what about countries that have neither?

Canada sold off most of their gold, but they have lots of natural resources.

8 countries have no natural resources, but they all have gold reserves.  (I checked it out on Google.)

 

Heard on a video today that all this global turmoil (health issues, money and digital issues) has to be settled by election time, if Trump wants to be re-elected.

 

Makes sense to me!

 

 

 

 

 

 

 

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3 hours ago, The Englishman said:

Bingo,  Rochester you are a smart man

 

Texas Shale changed the game forever.  Remember Drill baby Drill.  They did and OPEC can go pound sand. 

 

Evening ( UK time ) gents, i am slightly puzzled, whilst i acknowledge support system" rel="">support for each of our Countries resources & the financial benefits they bring, as most of you here are i assume invested in a Country in the ME, who are part of OPEC ( illegal or not ) i would of thought higher more stable world oil prices are very much of interest to you all, especially as Iraq's whole economy is dependant on oil.

Best Regards TE. 

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I'll repeat this again because it's very important.  It's only West Texas Intermediate oil that crashed today.  Brent oil is still $25-26 and I believe that's the price that Iraq sells oil at.

 

But with regards to WTI, this is a quick explanation of what happened, which I think is correct.    https://www.zerohedge.com/markets/here-full-explanation-behind-oils-unprecedented-negative-price

 

Here Is The Full Explanation Behind Today's Unprecedented Negative Oil Price

 

Courtesy of IHSMarkit's energy vice president Roger Diwan

How did you end up with negative oil prices today?  This happens when a physical futures contract find no buyers close to or at expiry. 

Let me explain what that means:

A physical contract such as the NYMEX WTI has a delivery point at Cushing, OK, & date, in this occurrence May.  So people who hold the contract at the end of the trading window have to take physical delivery of the oil they bought on the futures market.  This is very rare.

 

It means that in the last few days of the futures trading cycle, (which is tomorrow for this one) speculative or paper futures positions start rolling over to the next contract. This is normally a pretty undramatic affair.

What is happening today is trades or speculators who had bought the contract are finding themselves unable to resell it, and have no storage booked to get delivered the crude in Cushing, OK, where the delivery is specified in the contract.

This means that all the storage in Cushing is booked, and there is no price they can pay to store it, or they are totally inexperienced in this game and are caught holding a contract they did not understand the full physical aspect of as the time clock expires.

The contract roll and liquidity crunch that made the extreme sell-off today possible but it DOESN’T necessarily represent futures market conditions: NYMEX June settled today at $21.13.

The June contract is not out of the woods either: today’s action indicate that physical oil markets at Cushing are not in good shape and that storage is getting very full.

 

total%20storage%20capacity.jpg

A decline of over 15% in the June contract price points to real worries that the physical stress will continue to reverberate, and will force a lot more production shutdowns during May than the ones announced so far.

 

global%20capacity%20crashing.jpg

So today negative prices are the reflection of dire market conditions for producers, with the hope that demand restart before the middle of May and that the June contract does not face the same fate.

 

In Trump's press briefing today, he said he took 75 million barrels of WTI today.  He said more about it later in response to a reporter's question and said he's not sure if he'll just store it for the manufacturers or buy - really, take it for free or be paid to take it.  

 

That said, I agree low prices are here to stay - in every kind of oil.  Russia has budgeted $25/barrel long term and Trump said a year or two ago that he wants oil below $40, even down to $25 and Trump usually turns out to be correct.  And more and more cars are going hybrid or even all electric which will lessen oil demand.  Now we have the coronavirus which looks like it will put a lot of companies out of business, so when the world economy does recover, it won't be to the level it was a few months ago which will negatively effect the deman for oil.  And it's looking like China is going to be blamed for not alerting the world about the coronavirus early on and countries are already planning to pull their manufacturing from China.  Trump started doing that first thing when he took office and recently Japan announced they were pulling all their manufacturing from China too.  I'm sure many other countries and businesses will follow suit.  That will  decrease global transportation, especially shipping, which will also decrease oil demand.  Iraq needs to diversify to survive.  They recognize this and have talked about doing so in the last few years, but now they have to get busy doing that quickly.  In the meantime, if they simply stop suppressing the value of their currency through the auctions and let it rise to a market rate, it will give them a lot more purchasing power/wealth to hold them over while they build up new industries.      

B

NEVER SS THE NEW

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6 hours ago, DinarThug said:

An analytical vision ... the collapse of oil markets in the North American continent


Monday 20 April 2020


alsabaah-35102.jpg

 

Dr. Appearance of Mohamed Saleh


Saleh Is Quoted In Several Paragraph’s Near The End ...

 

:D  :D  :D 

 

 

The first comment from Donald Trump on the collapse of US crude prices


2020.04.21 - 01:15


eec80fd01-29126.jpg

Baghdad - people

 

US President Donald Trump briefly commented on the collapse of US oil prices during his daily press conference at the White House, which he devotes to talking about developments in the Corona epidemic.

Trump said at his conference at dawn Tuesday Baghdad time (April 21, 2020) that he was "looking to put 75 million barrels in the American oil reserves that he plans to fill with excellent prices," noting that his administration wants to "reopen America's economy in a responsible manner."

He added: "We hope to vote tomorrow in the Senate on an additional economic plan, and that the Americans continue to observe the rules of social separation."

Trump devoted most of his speech to the developments of the Corona epidemic in his country, stressing that the United States has made excellent progress in providing respirators and that it will soon help Mexico and other countries.

And an Iraqi economist presented, on Monday, simplified explanations for the causes of the collapse of American crude, while determining the percentage of Iraq being harmed.

Professor of Economics Nabil Al-Marsoumi said in a post that was followed by "People", (April 20, 2020) that "the collapse of West Texas crude to less than 6 dollars was not in the spot contracts or in the future contracts for the delivery of the month of June, which is still between 22 - 23 dollars, but it was Crude futures for the month of May are about to expire, and so the sale of these contracts worsened before the closing date, as they are due to officially expire when the prices are settled tomorrow, Tuesday, April 21, which contributed to the collapse of US crude.

He added that "the storage of US oil is occurring at a rapid pace, exceeding the levels of 70%, approaching the maximum storage."

He continued, "It is expected that US crude prices will rise again after the May futures sale boom ends."

He concluded by saying that "the damage to Iraq is not so great due to the collapse of American crude, due to the limited Iraqi exports to the United States, which are centered around 400,000 barrels per day, as well as that Iraq price Iraqi crude exported to US markets on the basis of ASCI crude (which also witnessed a significant decline ) It is not West Texas crude, as the price at which it sells Iraq depends on the rate of five bullet emissions for ASCII crude 15 days after the tanker is loaded and not on the basis of the one-day price rate.

Experts attributed the collapse of the American crude, Monday, to a number of factors that are not limited to the decline in demand for crude due to the state of closure in most regions of the world, due to the spread of the Corona virus, and the approach of American oil depots to fullness, while an Iraqi expert discussed the impact of the collapse of American oil prices, likely to Iraqi oil prices are relatively safe.

According to the latest developments, Reuters said that prices have reached -8, that is, after prices tumbled within hours from the limits of $ 20 a barrel of US oil to below zero, after having settled for several minutes at a few cents. 

The collapse in the oil market comes amid a state of economic stagnation due to the repercussions of the spread of the Coruna virus, and the measures taken to combat it.

The International Monetary Fund warns that getting the world's economies into a downward spiral will be the deepest since the Great Depression of the 1930s.

However, the sharp drop in crude prices is also due to technical reasons related to the approaching May deadline approaching Monday. June contract prices fell.

"The problem of an imbalance between supply and demand globally is beginning to materialize in prices," said Bernard Tonhugen, an analyst at Restad Energy.

He added in his speech to the Russian agency, "As production continues as relatively normal, the stockpiles are filled more and more every day."

Meanwhile, indicators that the emerging Corona virus appeared to have peaked in Europe and the United States did not succeed in raising Asian and European financial markets in general.

Instead, dealers are increasingly concerned that oil storage facilities may reach their maximum capacity, with stocks piled up due to the collapse in demand caused by the Covid-19 epidemic.

Analysts said that the agreement concluded this month between OPEC and its partners to reduce production by ten million barrels per day, does not affect significantly, because the comprehensive closures imposed and restrictions on travel forced billions of people around the world to adhere to their homes.

WTI was perhaps the most affected, as its main storage facilities in Cushing, Oklahoma, were full, while Traficat consultancy Sukrit Vijayakar pointed out that refineries did not process the crude quickly enough.

He said that there are many supplies from the Middle East without buyers "due to the high shipping costs."

"Nobody wants to take over oil with Cushing storage facilities full from one minute to the next," Stephen Ennis of Axecorp said, adding that "It did not take long for the market to realize that the OPEC Plus agreement would not be sufficient in its current form to ensure a balance in the oil markets." ".

Concurrently, most of the stock markets have retreated as well, although governments are beginning to think about how and when to ease the closing measures that have paralyzed the world economy.

And with the start of trading on Wall Street on Monday, stock indices fell to record Dow Jones Industrial decline by 1.8 percent at 23798.01 points in the first ten minutes of the trading session.

The S&P 500 index fell 1.3 percent to 2835.08 points, while the Nasdaq lost 0.7 percent to 8,588.66 points.

Italy, Spain, France and Britain recorded a decline in their daily number of deaths, accompanied by a slowdown in injury rates, while Germany began allowing some stores to reopen, while Norway reopened nurseries.

In the United States, New York State Governor Andrew Como said the epidemic was "receding," but he cautioned that this was "not the time to brag."

There is growing evidence that measures of closings and social estrangement slow down the spread of the virus.

On the other hand, economists say that the prices of the next fall payments may witness a noticeable improvement or even a recovery closer to the previous pre-crash rates, given the high expectations that global consumption may return to its levels by the fall, which will coincide with the recent OPEC + cuts package. 

On Monday, Advisor to the Prime Minister, Mazhar Muhammad Salih, explained the collapse of the oil markets in the North American continent, returning to the world that he had entered into a "fatal price war."

Saleh said in a statement, "People" received a copy of it, (April 20, 2020), that "the American market has played in recent years a dual role as an oligopoly sellers market and a monosopeny buyers market at the same time, especially during the past ten years gradually," noting that " The United States consumes about 19 million barrels of oil per day and represents 19% of the world's production alone and is the largest consumer of oil in the world. "

Saleh added, "The United States is one of the largest oil producers in the world, with a production capacity of about 13 million barrels, whether from shale or conventional oil." It is the Kingdom of Saudi Arabia, which contributed to dumping the market by nearly 12 million barrels per day.

And Saleh pointed out that "the whole oil world entered into a fatal price war and then turned the oil market into recession until it reached the point of collapse." A buyers market leads the world oil market to constitute a price war, the collapse of OPEC's strength as a sellers market, and the victory of the US-led buyers' market.

The advisor to the Prime Minister added, "It is two chances of victory. The first is that the low demand for world oil, which is 30% less than the current supply, and the second is an additional surplus of 300 million barrels capacity in the futures market," adding, "As this market formed the symbolic oil front or forward which He led the night’s collapses by turning the oil futures market.

And the appearance of Mohamed Saleh pointed out that "all speculators turned once to the short position, i.e. sell soon for futures contracts with the hope of cheaper purchase of the contracts themselves, but at a low point below the lowest breakpoint in the world, which did not lead to the collapse of the entire oil market."

He pointed out that "the final buyer of the oversupply is the United States market, which seized the collapsed future oil contracts, extensible them, and turned them into an immediate market," noting that "speculative oil companies in the United States are the ones who have the ability to receive the surplus supply and liquidate their contracts against storage capacities which are the largest In the world, in the future, the market will turn into a long position after that melting point or the breaking point above. "

Saleh concluded by saying: "It is the opportunity of the last winner who reaped the losses of the entire world of oil. The winner is the speculators who possess crude oil stocks in the United States of America, and according to a strategy the oil market will remain a buyers market forever."

On Monday, the Sadrist leader Muqtada al-Sadr's page called for taking a lesson from recent developments.

Minister of Al-Sadr Salih Al-Iraqi said in a post that was followed by “Nass” (April 20, 2020), “Oh God, occupy the oppressors with the oppressors, and bring us out from among them unscathed ... and isolate them and what they worship without God.

And one of the followers published "Enough lessons, and kills kings and succeeds others", to respond to Muhammad Salih al-Iraqi, "The one who tries the mighty is the man of the oppressors, the Great of His Majesty, the deceased of the corrupt and the disgrace of the worldliness, he is above them an authoritarian oppressor who does not show mercy except those who are humble, those who are faithful, obedient, those who seek forgiveness, and those who are disbelieving, and those who are disbelieving, and those who are disbelieving, and praising the disbelievers, and those who praise them. .

And he added, "Corruption appeared on land and at sea, as people gained hands so that some of them who had worked may harm them, so that they may return.

LINK

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13 hours ago, DinarThug said:

Hey Pitcher - Watch Me Make A Doctor Appear ! :cigar:

 

:D  :D  :D 

 

 

Now Watch These Mindless Middle East Misfits Make An Entire Oil Market Disappear ! :o 

 

:lmao:  :lmao:

 

 

An analytical vision ... the collapse of oil markets in the North American continent


Monday 20 April 2020


alsabaah-35102.jpg

 

Dr. Appearance of Mohamed Saleh

 


In recent years, the US market has played a dual role as an oligopoly sellers and monosopeny buyers market at the same time, especially during the past ten years gradually, as the United States consumes about 19 million barrels of oil per day and represents 19% of the world's production alone and is the largest oil consumer in the world . It is one of the largest producers of oil in the world, with a production capacity of about 13 million barrels, whether from shale or conventional oil. After the US oil production of 13 million barrels per day, as we mentioned, contributed to the shift to a net buyers market in parallel with the rebel sellers market, which is the Kingdom of Saudi Arabia, in flooding the market with approximately 12 million barrels per day, the entire oil world entered into a fatal price war and then turned the oil market to Depression until breaking point.

It is two chances of victory, the first is that the low demand for world oil, which is 30% less than the current supply, and the second is an additional surplus of 300 million barrels capacity in the futures market, as this market formed the symbolic or forward oil camp that led the night’s collapse through a coup The oil futures market, as all speculators turned once to the short position, i.e. sell immediately for futures contracts with the hope of cheaper purchase of the contracts themselves, but at a low point below the lowest break-even point in the world that did not lead to the collapse of the entire oil market, so the final buyer of the surplus is Su United States, which captured the future oil contractscollapsed and Ttviha and turn them into an immediate market.

In conclusion, it is the opportunity of the last winner who reaped the losses of the entire world, for the winner is the speculators who have stocks of crude oil in the United States of America and according to a strategy the oil market will remain a buyers market forever.

LINK

 

I could see Gold spread moving up also. Last round people were covering Shorts by selling gold. Of course it was fake Gold (paper) and the spread was like $170 an oz.

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Yep as the price drops so does the wealth of a lot of elites....there’s already reports of individual losses upto 1 billion dollars each! The oil derisive markets let by jp chase is one big scam like the silver contracts...when the dust settles gold prices will go up and so will silver...

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1 minute ago, screwball said:

Yep as the price drops so does the wealth of a lot of elites....there’s already reports of individual losses upto 1 billion dollars each! The oil derisive markets let by jp chase is one big scam like the silver contracts...when the dust settles gold prices will go up and so will silver...

 

I like that, been buying Ag and Au for a while. Time to let the market determine the price. 

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12 hours ago, KristiD said:

I'll repeat this again because it's very important.  It's only West Texas Intermediate oil that crashed today.  Brent oil is still $25-26 and I believe that's the price that Iraq sells oil at.

 

But with regards to WTI, this is a quick explanation of what happened, which I think is correct.    https://www.zerohedge.com/markets/here-full-explanation-behind-oils-unprecedented-negative-price

 

Here Is The Full Explanation Behind Today's Unprecedented Negative Oil Price

 

Courtesy of IHSMarkit's energy vice president Roger Diwan

How did you end up with negative oil prices today?  This happens when a physical futures contract find no buyers close to or at expiry. 

Let me explain what that means:

A physical contract such as the NYMEX WTI has a delivery point at Cushing, OK, & date, in this occurrence May.  So people who hold the contract at the end of the trading window have to take physical delivery of the oil they bought on the futures market.  This is very rare.

 

It means that in the last few days of the futures trading cycle, (which is tomorrow for this one) speculative or paper futures positions start rolling over to the next contract. This is normally a pretty undramatic affair.

What is happening today is trades or speculators who had bought the contract are finding themselves unable to resell it, and have no storage booked to get delivered the crude in Cushing, OK, where the delivery is specified in the contract.

This means that all the storage in Cushing is booked, and there is no price they can pay to store it, or they are totally inexperienced in this game and are caught holding a contract they did not understand the full physical aspect of as the time clock expires.

The contract roll and liquidity crunch that made the extreme sell-off today possible but it DOESN’T necessarily represent futures market conditions: NYMEX June settled today at $21.13.

The June contract is not out of the woods either: today’s action indicate that physical oil markets at Cushing are not in good shape and that storage is getting very full.

 

total%20storage%20capacity.jpg

A decline of over 15% in the June contract price points to real worries that the physical stress will continue to reverberate, and will force a lot more production shutdowns during May than the ones announced so far.

 

global%20capacity%20crashing.jpg

So today negative prices are the reflection of dire market conditions for producers, with the hope that demand restart before the middle of May and that the June contract does not face the same fate.

 

In Trump's press briefing today, he said he took 75 million barrels of WTI today.  He said more about it later in response to a reporter's question and said he's not sure if he'll just store it for the manufacturers or buy - really, take it for free or be paid to take it.  

 

That said, I agree low prices are here to stay - in every kind of oil.  Russia has budgeted $25/barrel long term and Trump said a year or two ago that he wants oil below $40, even down to $25 and Trump usually turns out to be correct.  And more and more cars are going hybrid or even all electric which will lessen oil demand.  Now we have the coronavirus which looks like it will put a lot of companies out of business, so when the world economy does recover, it won't be to the level it was a few months ago which will negatively effect the deman for oil.  And it's looking like China is going to be blamed for not alerting the world about the coronavirus early on and countries are already planning to pull their manufacturing from China.  Trump started doing that first thing when he took office and recently Japan announced they were pulling all their manufacturing from China too.  I'm sure many other countries and businesses will follow suit.  That will  decrease global transportation, especially shipping, which will also decrease oil demand.  Iraq needs to diversify to survive.  They recognize this and have talked about doing so in the last few years, but now they have to get busy doing that quickly.  In the meantime, if they simply stop suppressing the value of their currency through the auctions and let it rise to a market rate, it will give them a lot more purchasing power/wealth to hold them over while they build up new industries.      

B

NEVER SS THE NEW

 

Darn you Kristi......being a voice of reason when the MSM is spinning up great conspiracy plots.......illusion creates delusion.......ha...

 

But seriously.......ask most any average world citizen what happened.......the media led Sheeple  for the most part, are clueless......always appreciate your insight......    CL

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