Holy *#&. West Texas Intermediate is under $3/barrel

[Recursion]

https://www.npr.org/sections/coronavirus-live-updates/2020/04/20/838521862/free-falling-oil-prices-keep-diving-as-demand-disappears

Holy shitsnaps

How low will oil prices go?

A key American oil benchmark, West Texas Intermediate, fell by more than 80% on Monday as global oil markets continue to grapple with a pandemic-driven collapse in demand.

At the start of 2020, a barrel of WTI cost around $60.

Shortly after 1:30 p.m. ET on Monday, a barrel was trading for less than $3 — the lowest price the WTI futures market has ever seen.

[SoonerPride]

1. Maybe the oil excecs can drink it

They are a scourge on the planet.

[dawg]

2. Somebody's getting wrecked.

I'm not smart enough to know who, exactly, but I can't imagine that there aren't a number of players who won't be coming back from this one.

[customerserviceguy]

40. Speculators

At least today. They buy these futures contracts, hoping to make a profit before having to take delivery, and pay fees to store the oil, not that there's much of any place to do that anymore.

Gamblers sometimes lose, that's just how things go when you play around with life's necessities.

[Calculating]

3. Not good

Whatever people think of big oil, this will put hundreds of thousands of Americans working in the industry out of a job. Also, many decent people own oil stocks in their 401ks.

[SoonerPride]

5. Nah. That's like crying for the coal companies.

It’s poison and poisons the earth.

Fuck them

[Calculating]

6. As you type that on a device made possible by oil

It has made our modern way of life possible, without it we would all be living like the Amish.

[Newest Reality]

16. Yes.

It is not general knowledge I guess that petroleum is not just used for fuel, it is the black blood that courses through modern civilizations right now.

Looking up what is made with it or from it reveals that. The list is very long and much of what people have around them is a product of it or by it. Plastic, pharmaceuticals, cosmetics, etc., etc.

[mr_lebowski]

22. Coal is way more readily replaced by sorta-renewables and significantly more polluting

I'm all for getting rid of coal as an energy source ... Oil, being a concentrated, portable, and highly versatile source of energy and also used as the primary stock for 10's of 10000's of products we all used every day ... cannot be so blithely dismissed.

If all the oil in the world dried up overnight, at least half the population of the planet would be dead within 3 months.

[Blue_true]

48. Some are blinded by their ideology.

For them, nothing short of an absolute is adequate. That hundreds of thousands of working people stand to lose jobs, hones, ect is meaningless to an ideologue. Like you pointed out, oil is deeply ingrained in the functioning of our world, it will take time and broad use of alternatives to unwind that reality, something that is deeply unacceptable to an ideologue.

[herding cats]

4. "Houston, we have a problem."

[getagrip_already]

43. it's -$35 now.....

What does that even mean?

[herding cats]

44. It means they're paying to unload the stuff into storages if they can find any with space.

It's uncharted territory for me.

[Hoyt]

7. Before this is over, those $12 - $17 an hour jobs are going to look like the good ole days.

[Calculating]

14. Yeah, great depression incoming at this rate

We're gonna have 50+ million unemployed and people will be BEGGING for min wage jobs digging holes before long.

[Turbineguy]

8. May contract.

[herding cats]

13. Which expires at the end of trading tomorrow.

June will be better since the supply cuts should impact that month, whereas it missed May.

[unblock]

9. i wonder if i can build one of those big storage tanks on my property lol.

[roamer65]

10. It just hit 1.04 a bit ago.

[brewens]

11. Of course I go and top off the truck a couple days back. I'm thinking it can't go any lower,

things maybe getting going again, the deal Trump bragged about, probably should. I can look out the door and see a truck full of cheap gas that can't go anywhere. I shouldn't need to fill up until this time next year if the virus is still dangerous.

[cayugafalls]

12. Texas might be able to restart the economy early by opening up, but this is going to hurt...

for a long time.

Oil prices, however, are travel dependent and will spike once levels go back up. The damage has been done though and this will impact lots of jobs here in the state.

[empedocles]

15. Well advertised recent deal 'twixt, putin, 'Bone Saws', helped by trump, seems to be

not going well.

With a trio like that, what could go wrong?

[Before this 'era' is over, we may see other extremely bizarre charts for other sectors. Watch out!]

[Newest Reality]

17. I wonder...

I wonder how gas prices will reflect that?

That should be interesting. It could look like the pre-70's if this keeps up.

[sarisataka]

18. What is the break even price

On a barrel of oil? At what point are companies selling the oil at a loss?

[Recursion]

20. Depends on the field, but for extraction about $20 or so

Transport and refining are a whole nother beast, though

[TexasTowelie]

38. For fracking, the West Texas breakeven point is about $50 a barrel.

Astonishing that the price for a barrel of oil (42 gallons) is less than a gallon of gas was just a month ago.

[mr_lebowski]

31. I believe for the US fracked tight-shale plays, under $40/bbl is a money-loser overall (nt)

[Renew Deal]

19. How can I order a few barrels?

[Recursion]

21. If you've got a friend in Chicago, he can place the floor order

You've got to pay for moving it from Point A to Point B, though.

[Renew Deal]

23. Bait and Switch!

[Newest Reality]

24. I think the...

I think the physical barrels will cost you several more times what the oil is going for right now

[Renew Deal]

30. Sounds like a deal

I'll pay the full $3.

[herding cats]

25. The barrels are worth more than the oil.

They go for about $47 each, but it's not really stored in barrels. It's just a measurement.

[Shermann]

26. Odd that the Dow and S&P aren't lower than they are today

That's really an alarming drop. The markets are mostly shrugging it off.

[Calculating]

29. The markets are on crack

Just look at the Nasdaq, like 10% off the all time highs like nothing bad is happening.

[mr_lebowski]

33. Thanks to the largesse of the US taxpayer (nt)

[Shermann]

37. I came to the same conclusion and lightened up on equities last week after the bounce half way back

I'm still in the game. Just keeping more of my powder dry, maybe waiting for Joe to spank all the naughty children running around the house.

[The Magistrate]

27. Holy Mother Of Christ, Sir!

There is a strange new world straining to be born....

[Gothmog]

28. A barrel of oil is now cheaper than a pint of beer.

Link to tweet

Link to tweet

[herding cats]

32. Lowest I saw was $0.87

Holy shit!

[Gothmog]

34. My son does energy lending and so he is busy right now

I would hate to see what these prices do to reserved based loans

[roamer65]

35. No storage for the oil.

Very soon oil producers are going to have to shut off production.

[madville]

36. The virus shutdown has been great for the environment

Saw an article recently about atmospheric pollution levels plummeting.

[Bantamfancier]

46. You mean they can't just

pile it up outside? Like the corn and soybean farmers do when they produce too much.
What if they threw a tarpaulin over it?

[roamer65]

47. Lol.

[getagrip_already]

39. It's now -$1.41 - how is it possible to trade in negative dollars?

[img][/img]

[Recursion]

41. People will pay you to take it away from them. It's a supply-chain issue (nt)

[getagrip_already]

42. Now it's minus $35???? wtaf? n/t

[Gothmog]

45. From Congresswoman Lizzie Fletcher

Link to tweet