Warhippy Posted April 20, 2020 Share Posted April 20, 2020 Just now, nuckin_futz said: For those freaking out about oil prices. It's the May contract that's getting obliterated. The May contract expires on the 21st of April. June is trading at approx $22. Most of the trading volume has already migrated over to the June contract. May contract = 133K today, June contract = 850K today. Though it is rather eye popping to see Western Canadian Select trading as low as 43 cents a barrell. Now at what point in time does the market forces as they stand change the parameters of those numbers? Link to comment Share on other sites More sharing options...
Ronaldoescobar Posted April 20, 2020 Share Posted April 20, 2020 5 minutes ago, nuckin_futz said: For those freaking out about oil prices. It's the May contract that's getting obliterated. The May contract expires on the 21st of April. June is trading at approx $22. Most of the trading volume has already migrated over to the June contract. May contract = 133K today, June contract = 850K today. Though it is rather eye popping to see Western Canadian Select trading as low as 43 cents a barrell. Pretty much the reason for most movements in any market these days. contracts being moved and institutional investors / funds re-balancing. Link to comment Share on other sites More sharing options...
HerrDrFunk Posted April 20, 2020 Share Posted April 20, 2020 2 Link to comment Share on other sites More sharing options...
nuckin_futz Posted April 20, 2020 Author Share Posted April 20, 2020 2 minutes ago, HerrDrFunk said: I take it you weren't around for the close? May oil settles at -$37.63 and there's still a day of trading to go on the contract Mon 20 Apr 2020 18:39:29 GMT People are furiously trying to find a way to store oil If you're not trying to figure out a way to get paid to store barrels of oil right now, you're not even in the game. These are absolutely bizarre times. It's tough to even comprehend what's happening here but this is some kind of watershed somehow and it's not good. I fully expect someone, somewhere to find a way to get paid $37 per barrel to take delivery of this oil but I don't see why the same thing shouldn't happen in a month. This chart is ruined forever. So many people are saying that it's really the June contract that matters but I categorically deny that argument. What ultimately matters is what someone will pay for oil on the ground and this implosion is revealing that no one wants it. Obviously it's an overshoot but you have to wonder: Who is really expecting to have to pay $21 per barrel to buy it in a month. Link to comment Share on other sites More sharing options...
JM_ Posted April 20, 2020 Share Posted April 20, 2020 12 minutes ago, HerrDrFunk said: good god. All kidding with AB aside, this is unreal. I'm scared for people there reaching despair levels.... yikes. Link to comment Share on other sites More sharing options...
nuckin_futz Posted April 20, 2020 Author Share Posted April 20, 2020 Nearly all physical oil in the United States is trading negative Mon 20 Apr 2020 19:01:12 GMT Every delivery point and grade It's not just WTI now, every grade in the US is now deeply negative. This is hard to believe. I haven't seen an updated Canadian oil chart but surely it's the same story. It's not just oil either, Permian spot natural gas is trading at -$10/mmbtu ********************* The ART OF THE OIL DEAL ladies and gentlemen And if it isn't too big of a coincidence. Today it the 10 yr anniversary of the BP Deepwater Horizon oil spill in the gulf. 1 Link to comment Share on other sites More sharing options...
I.Am.Ironman Posted April 20, 2020 Share Posted April 20, 2020 2 minutes ago, nuckin_futz said: And if it isn't too big of a coincidence. Today it the 10 yr anniversary of the BP Deepwater Horizon oil spill in the gulf. Great movie Link to comment Share on other sites More sharing options...
Violator Posted April 20, 2020 Share Posted April 20, 2020 (edited) This is what the saudis tried to do in 2014 with american shale they are exceeding now. Perfect storm. Big users of oil are sitting around airplanes are barely being flown and cruise ships are sitting idle. Edited April 20, 2020 by Violator Link to comment Share on other sites More sharing options...
Warhippy Posted April 20, 2020 Share Posted April 20, 2020 2 hours ago, nuckin_futz said: Nearly all physical oil in the United States is trading negative Mon 20 Apr 2020 19:01:12 GMT Every delivery point and grade It's not just WTI now, every grade in the US is now deeply negative. This is hard to believe. I haven't seen an updated Canadian oil chart but surely it's the same story. It's not just oil either, Permian spot natural gas is trading at -$10/mmbtu ********************* The ART OF THE OIL DEAL ladies and gentlemen And if it isn't too big of a coincidence. Today it the 10 yr anniversary of the BP Deepwater Horizon oil spill in the gulf. So there's still more dropping to occur....yikes Link to comment Share on other sites More sharing options...
nuckin_futz Posted April 20, 2020 Author Share Posted April 20, 2020 Canada - oil - Alberta province wants a CAD15-30bn bailout Mon 20 Apr 2020 22:24:06 GMT Oil province Alberta in Canada: seeking C$15-30bn federal credit back stop speaking with Texas authorities, US Federal authorities about output cuts says "oil inventories are reaching tank tops" ******************* Could probably drop this in many different threads. Link to comment Share on other sites More sharing options...
Warhippy Posted April 20, 2020 Share Posted April 20, 2020 26 minutes ago, nuckin_futz said: Canada - oil - Alberta province wants a CAD15-30bn bailout Mon 20 Apr 2020 22:24:06 GMT Oil province Alberta in Canada: seeking C$15-30bn federal credit back stop speaking with Texas authorities, US Federal authorities about output cuts says "oil inventories are reaching tank tops" ******************* Could probably drop this in many different threads. Now why would we bail out oil companies? Why wouldn't we bail out people instead? $30 billion to companies who will keep producing in other markets while automating or shuttering production here makes no sense. $30 billion, but Canadians take percentages of ownership. Let's see how many companies have the stomach 3 1 Link to comment Share on other sites More sharing options...
King Heffy Posted April 21, 2020 Share Posted April 21, 2020 1 hour ago, Warhippy said: Now why would we bail out oil companies? Why wouldn't we bail out people instead? $30 billion to companies who will keep producing in other markets while automating or shuttering production here makes no sense. $30 billion, but Canadians take percentages of ownership. Let's see how many companies have the stomach NEP doesn't sound so bad at all now, does it? Wonder how Alberta will feel about equalization if they become a have-not province. Link to comment Share on other sites More sharing options...
Warhippy Posted April 21, 2020 Share Posted April 21, 2020 9 minutes ago, King Heffy said: NEP doesn't sound so bad at all now, does it? Wonder how Alberta will feel about equalization if they become a have-not province. I won't even bother saying it. They won't understand out of sheer choice Link to comment Share on other sites More sharing options...
BPA Posted April 21, 2020 Share Posted April 21, 2020 No way to a 15-30B bailout. So what the hell happens when SA and Russia does this again in 5 to 10 years? Another bailout?? AB will be a have not Province at this rate. Link to comment Share on other sites More sharing options...
Warhippy Posted April 21, 2020 Share Posted April 21, 2020 2 hours ago, BPA said: No way to a 15-30B bailout. So what the hell happens when SA and Russia does this again in 5 to 10 years? Another bailout?? AB will be a have not Province at this rate. There in lies the issue. It's nothing else BUT market forces doing this. Bail them out now. Then what, they do it again in 3 months? Oil as a means of transportation continues to diminish while automation escalates on the patch and then we bail them out again and again and again. Didn't like this with the auto sector the last 3 times it happened don't like this now. Companies should NOT be gifted our tax dollars. 1 Link to comment Share on other sites More sharing options...
nuckin_futz Posted April 21, 2020 Author Share Posted April 21, 2020 The oil capitulation continues, WTI June contract falls by more than 40% now Tue 21 Apr 2020 09:34:50 GMT The June contract hits a low of $11.79 It's getting tough to keep up with things at this pace. The plunge is unrelenting as we now see prices drop by 42% in the June contract. Link to comment Share on other sites More sharing options...
Warhippy Posted April 21, 2020 Share Posted April 21, 2020 4 hours ago, nuckin_futz said: The oil capitulation continues, WTI June contract falls by more than 40% now Tue 21 Apr 2020 09:34:50 GMT The June contract hits a low of $11.79 It's getting tough to keep up with things at this pace. The plunge is unrelenting as we now see prices drop by 42% in the June contract. That's unreal.... Link to comment Share on other sites More sharing options...
JM_ Posted April 21, 2020 Share Posted April 21, 2020 16 hours ago, Warhippy said: Now why would we bail out oil companies? Why wouldn't we bail out people instead? $30 billion to companies who will keep producing in other markets while automating or shuttering production here makes no sense. $30 billion, but Canadians take percentages of ownership. Let's see how many companies have the stomach I have no problem at all with 15 billion going directly to Albertans and to Alberta companies trying to diversity Alberta's economy. I do not want my tax dollars going directly to oil companies who will likely never pay it back. Alberta needs new industries and capabilities, lets invest in that instead. If oil rebounds it can take care of itself just fine. 2 1 1 Link to comment Share on other sites More sharing options...
Warhippy Posted April 21, 2020 Share Posted April 21, 2020 42 minutes ago, Jimmy McGill said: I have no problem at all with 15 billion going directly to Albertans and to Alberta companies trying to diversity Alberta's economy. I do not want my tax dollars going directly to oil companies who will likely never pay it back. Alberta needs new industries and capabilities, lets invest in that instead. If oil rebounds it can take care of itself just fine. That's where I'm at. Asking for a blank cheque which will just go to oil companies doesn't sit well Link to comment Share on other sites More sharing options...
JM_ Posted April 21, 2020 Share Posted April 21, 2020 46 minutes ago, Warhippy said: That's where I'm at. Asking for a blank cheque which will just go to oil companies doesn't sit well Oil companies will collapse and consolidate through this. Demand will eventually come back and the bigger dogs left standing will still need a lot of workers and pay lots of royalties. If we try to pick winners and losers via government thats going to be a disaster and waste billions. I know there are many Albertans who want alternatives to the oil industry, lets help them out this time. Link to comment Share on other sites More sharing options...
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