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Oil Hits $20 For The First Time In 18 Years
Oilprice.com ^ | 03-30-2020 | Para

Posted on 03/30/2020 9:02:01 AM PDT by bananaman22

Oil prices plunged on Monday to their lowest levels in eighteen years, below $20 per barrel, as the coronavirus pandemic continues to cripple global oil demand with no signs of Saudi Arabia backing down on its promised supply surge.

(Excerpt) Read more at oilprice.com ...


TOPICS: Business/Economy
KEYWORDS: energy; hydrocarbons; maga; oil; oilmarkets; oilprices; oilsupply; opec
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To: Born to Conserve
that's why futures markets exist ... so entities holding the actual product can hedge against prices moves while they're holding.

it's no coincidence that 1 futures contract for gasoline if for 44,000 gallons, the same as a tractor trailer holds.

if they hedged they could move the price at the pump immediately to match the spot price.

41 posted on 03/30/2020 10:58:11 AM PDT by bankwalker (Immigration without assimilation is an invasion.)
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To: bankwalker

“44,000 gallons, the same as a tractor trailer holds.”

Huh?

Gas weighs about 6 pounds a gallon. That would be a massive truck. Did you mean pounds?


42 posted on 03/30/2020 11:02:33 AM PDT by mad_as_he$$
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To: Bloody Sam Roberts

Just paid $1.69 per gallon here in Austin.


43 posted on 03/30/2020 11:05:17 AM PDT by BubbaBobTX ("The problem with socialism is you eventually run out of other peoples money." Margaret Thatcher)
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To: Magnum44

In the People’s Soviet of Washington, with a refinery 66 miles away, the price is $2.55. You can thank one of the nation’s highest gas taxes for that.


44 posted on 03/30/2020 11:07:17 AM PDT by RinaseaofDs
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To: BubbaBobTX

I filled up for $1.59 not 30 minutes ago.


45 posted on 03/30/2020 11:09:08 AM PDT by Data Miner
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To: gathersnomoss

What I don’t understand is why very little noise from Washington about this. Obviously, oil was going down with the global lock down. But what Saudi is doing threatens more than just the U.S. oil companies. Combined with the virus, this could lead to global fighting. I have to believe the Trump admin believes this is in our best interest long term, or surely he would be tweeting about it.

My employer started major layoffs and furloughs this week.


46 posted on 03/30/2020 11:10:29 AM PDT by okkev68
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To: mad_as_he$$
a massive truck

They do exist but quite uncommon.


47 posted on 03/30/2020 11:11:48 AM PDT by nascarnation
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To: bankwalker

A tractor trailer tanker holds about 6500 gallons. Don’t know where you got that 44,000 number.


48 posted on 03/30/2020 11:12:21 AM PDT by eastforker (All in, I'm all Trump,what you got!)
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To: bananaman22

Low oil prices are great for consumers.

Low oil prices lead to layoffs in the oil business.

Seen it over and over since the mid 70’s.


49 posted on 03/30/2020 11:17:52 AM PDT by Texas resident (The American media is our enemy)
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To: bananaman22

In the oil fields of N.W. N.M., oil is down from $80 to $20 a barrel and gas prices are down .20 a gallon to $2.25.


50 posted on 03/30/2020 11:23:37 AM PDT by redcatcherb412
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To: ExGeeEye
I am experiencing prices from Clinton’s second! Though I felt raped at the time...

I just got to say it. Better put some ice on that.

51 posted on 03/30/2020 12:02:14 PM PDT by VRW Conspirator (NuRulz)
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To: SanchoP

And “Last one to leave Midland turn out the lights”.


52 posted on 03/30/2020 12:03:25 PM PDT by Rusty0604 (2020 four more years!)
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To: bananaman22
Maybe they will start giving this stuff away again at retail gas stations.


53 posted on 03/30/2020 12:09:43 PM PDT by central_va (I won't be reconstructed and I do not give a damn....)
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To: AdmSmith; AnonymousConservative; Arthur Wildfire! March; Berosus; Bockscar; cardinal4; ColdOne; ...
some chrono-sorted topics off the top of the OPEC keyword:

54 posted on 03/30/2020 12:12:58 PM PDT by SunkenCiv (Imagine an imaginary menagerie manager imagining managing an imaginary menagerie.)
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To: Levy78
but... but... peak oil...we’re going to run out any day... we’re all dooooooomed.

The ONLY good thing about this pandemic horror is bored 'elites' have shut up about global warming for a while.

55 posted on 03/30/2020 1:42:47 PM PDT by GOPJ ( http://www.tinyurl.com/cvirusmap)
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To: bananaman22

So when are we going to see that at the pump?


56 posted on 03/30/2020 1:45:56 PM PDT by metmom (...fixing our eyes on Jesus, the Author and Perfecter of our faith...)
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To: okkev68

[What I don’t understand is why very little noise from Washington about this. Obviously, oil was going down with the global lock down. But what Saudi is doing threatens more than just the U.S. oil companies. Combined with the virus, this could lead to global fighting. I have to believe the Trump admin believes this is in our best interest long term, or surely he would be tweeting about it.

My employer started major layoffs and furloughs this week.]


There is no long term for $20 oil. At $20, the Saudis run a $200b annual budget deficit. Ditto for the Russians. They can keep this up for about a year or so, before crying uncle. Because long before their foreign exchange reserves are exhausted (3 years max), their borrowing costs skyrocket, their currencies take a dive and their domestic economies grind to a halt.

Ultimately, this is about the Saudis rapping the Russians on the knuckles for exceeding their production quota. Russian oil is profitable at $20. For Saudi oil, it’s $10 or less. But both countries are heavily reliant on oil revenues to fund their government spending. At $20, Putin might lose power, just like Gorbachev did. Whereas the Saudis may have a little more breathing room, thanks to recent large scale seizures of wealth from cadet branches of the Saudi royal family by MBS.


57 posted on 03/30/2020 5:33:45 PM PDT by Zhang Fei (My dad had a Delta 88. That was a car. It was like driving your living room.)
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To: GOPJ

so global CO2 is plunging
now we’re gonna freeze next winter!


58 posted on 03/30/2020 5:35:57 PM PDT by nascarnation
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To: Obadiah

Back around election I made a wish on this board that gas would come to be back down around $1. Maybe I should have been more specific.


59 posted on 03/30/2020 5:50:21 PM PDT by gnarledmaw (Hive minded liberals worship leaders, sovereign conservatives elect servants.)
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To: SunkenCiv

Tomorrows archaeology today: Find this post 20 years from now. Oil will have lost most of its value as it will no longer be being used as auto fuel. 1904 was a bad time to invest in a new buggy whip factory or to start worrying about the long term effect of whaling on international politics.


60 posted on 03/30/2020 6:09:20 PM PDT by gnarledmaw (Hive minded liberals worship leaders, sovereign conservatives elect servants.)
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