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Old 04-20-2020, 12:25 PM   #21
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US storage tanks are filling fast and there is nowhere to put the production.
No demand + no more storage capacity = no one wants it and the price goes to $0.

Can't help wondering what the fallout will be from this and how much future pain will result.
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Old 04-20-2020, 12:29 PM   #22
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Looked at the commodity prices this morning and was shocked to see crude oil was at $10.50 a barrel.

Just took a look now, barely an hour later and the price of a barrel of oil is at $5.04!

I think the last time oil was this cheap was in the 1970's.
This is the expiration of the May contract tomorrow. The next futures contract was trading above $22 this morning. Iím interested to see what happens tomorrow and Wednesday.
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Old 04-20-2020, 12:31 PM   #23
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I'm concerned the fallout from this will be painful for all of us in the future as the ripple effect will go deeper and farther than any of us can envision.
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Old 04-20-2020, 12:34 PM   #24
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At a negative $6 per bbl.
Buy that F-250 and drive until you drop.
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Old 04-20-2020, 12:34 PM   #25
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This is the expiration of the May contract tomorrow. The next futures contract was trading above $22 this morning. Iím interested to see what happens tomorrow and Wednesday.
I'll bet your interest pales in comparison to the folks living in Odessa and Midland - at least to those who didn't suffer a heart attack or stroke today.
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Old 04-20-2020, 12:37 PM   #26
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This is the expiration of the May contract tomorrow. The next futures contract was trading above $22 this morning. Iím interested to see what happens tomorrow and Wednesday.
With most people staying at home the busy driving season of the summer vacation period is basically dead. I would expect the June contracts to start falling.
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Old 04-20-2020, 12:37 PM   #27
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I'll bet your interest pales in comparison to the folks living in Odessa and Midland - at least to those who didn't suffer a heart attack or stroke today.
Iím sure.
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Old 04-20-2020, 12:37 PM   #28
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I'll bet your interest pales in comparison to the folks living in Odessa and Midland - at least to those who didn't suffer a heart attack or stroke today.
Well, the BofA building is 330 feet high. High enough.
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Old 04-20-2020, 12:40 PM   #29
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As I type, (according to Yahoo) May crude is 4.4000 -13.8700 (-75.92%)
I'd like to open a position related to the sector. Thinking of 3 possibilities.
Exxon, Chevron, or Fidelity Select Energy Portfolio (FSENX)

Any other ideas/suggestions ?
Did you apply that logic to Eastman Kodak?

Oil and gas is a circular firing squad and is not a suitable sector for investing. I have posted many times telling people to avoid this sector for the past four years. Here are the reasons why:

1- It's a capital intensive sector with very little ROI.

2- Many independent oil producers will be out of business soon. The bond market is signalling this.

3- Fund managers are divesting from this sector in record numbers

4- Dividends are not safe with the major oil companies. Many are issuing debt or selling assets to support their dividend. How long can they keep that up?

5- The future is even more grim as electric car battery prices continue to fall and the storage density increases. Automobiles account for 70% of the demand for crude.

This a sector that is going through Darwinism with the surviving companies being heavily wounded and will have to restructure due to heavy debt loads wiping out common shareholders.
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Old 04-20-2020, 12:41 PM   #30
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Well, the BofA building is 330 feet high. High enough.
+1

Oil prices may not be the only thing falling in Midland.
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Old 04-20-2020, 12:43 PM   #31
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The May contract is down to -$53 dollars. This is what happens when traders get too long in a market.
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Old 04-20-2020, 12:53 PM   #32
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What I would want to have today is a large, empty crude oil storage tank.
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Old 04-20-2020, 01:02 PM   #33
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+1

Oil prices may not be the only thing falling in Midland.
That's a cold & disgusting statement.
I respect that
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Old 04-20-2020, 01:04 PM   #34
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The May contract is down to -$53 dollars. This is what happens when traders get too long in a market.
So how does this pricing affect the price of gas short term?
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Old 04-20-2020, 01:46 PM   #35
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At a negative $6 per bbl.
Buy that F-250 and drive until you drop.
Just don't ever try and use the 4x4 function
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Old 04-20-2020, 01:48 PM   #36
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Wow, I’m seeing like -$38 per barrel!
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Old 04-20-2020, 01:52 PM   #37
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Time to start capping the wells?
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Old 04-20-2020, 02:01 PM   #38
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Hey Mr. Putin how's that oil price war of yours going?
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Old 04-20-2020, 02:14 PM   #39
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How much will they pay me to fill up my tank tomorrow......LOL
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Old 04-20-2020, 02:19 PM   #40
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+1

Oil prices may not be the only thing falling in Midland.
Think of the future cheap real estate just around the corner in the Texas oil patch.
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