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Thread: Negative Oil?

  1. #1

    Default Negative Oil?

    Sorry, I had to give this its own thread because of the the short-term insanity.




    I'm not sure what is going on... That is the May futures contract. June is still $20 a barrel right now.

    https://www.cnbc.com/quotes/?symbol=@CL.2

    https://www.cnbc.com/quotes/?symbol=@CL.1
    Tom
    Market Commentary | My Blog | TSP Talk Plus | |

    I am not a Registered Investment Advisor and this is not investment advice. Please do your own due diligence.


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  3. #2

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    Default Re: Nickle Oil?

    Crazy. Too bad it's not Brent.
    "Treat your wife with honor, respect, and understanding as you live together so that you can pray effectively as husband and wife." 1 Peter 3:7

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  5. #3

    Default Re: Nickle Oil?

    An oil futures contract expiring Tuesday went negative in bizarre move showing a demand collapse

    https://www.cnbc.com/2020/04/20/oil-...ts-demand.html
    Tom
    Market Commentary | My Blog | TSP Talk Plus | |

    I am not a Registered Investment Advisor and this is not investment advice. Please do your own due diligence.

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  7. #4

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    Default Re: Negative Oil?

    Trying to shine a turd:
    This oil price crash isn’t as bad as it seems — here’s why

    https://www.cnbc.com/2020/04/20/this...heres-why.html
    Weatherweenie's Account Talk
    Teddy Roosevelt: Patriotism means to stand by the country. It does not mean to stand by the president or any other public official. Retired on November 30, 2023 with 30+ years of service.

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  9. #5

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    Default Re: Negative Oil?

    Spot price is still above $20. Subsidies for electric cars and solar power don't make any more sense today than 10 years ago.

    How much of this selling has to do with contract rollover?

    Too bad it's not Brent.
    Agree with that, but I'm sure some people in the US would support sending financial aid if it was Brent.

    Dianne Feinstein of California, a member of the Senate's intelligence and appropriations committees, said she was "disappointed" that the White House intends to block Tehran's request for funds.


    "Providing these funds to Iran would help it respond more effectively to the disease and mitigate the risk of further destabilisation in the region," Feinstein said
    https://www.middleeasteye.net/news/c...f-loan-request

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  11. #6

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    Default Re: Negative Oil?

    This bodes extremely well for AMZN, FDX, UPS, etc. if this translates to collapsing gasoline prices.

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    Default Re: Negative Oil?

    Quote Originally Posted by Bullitt View Post
    This bodes extremely well for AMZN, FDX, UPS, etc. if this translates to collapsing gasoline prices.
    I would think any transport or industry that has a heavy energy expense should benefit greatly from these oil prices. But, today we see the air and cruise lines down again. They are so beat up though that I'm not sure these companies can afford to buy up large amounts of oil at this time. That and their storage is probably already full, as oil prices have been falling for so long now, they probably thought they had a steal a month ago and loaded up.

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  15. #8

    Default Re: Negative Oil?

    May contracts back above $0. June is now getting crushed, down 24% today.

    https://www.cnbc.com/quotes/?symbol=@CL.1

    https://www.cnbc.com/quotes/?symbol=@CL.2
    Tom
    Market Commentary | My Blog | TSP Talk Plus | |

    I am not a Registered Investment Advisor and this is not investment advice. Please do your own due diligence.

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  17. #9

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    Default Re: Negative Oil?

    Quote Originally Posted by bmneveu View Post
    we see the air and cruise lines down again.
    Those two industries are toxic, reliant on government bailouts after decades of being poorly run.

    Spot prices are in the teens. I'm wondering about the ripple effects of all the credit default swaps being triggered when companies actually do collapse. Will the institutions who insured them be able to pay out? I doubt it.

    CHK, RIG, DO won't be surviving this rout. All 3 were such darlings to own in the 2008 oil run.


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    Default Re: Negative Oil?

    US Oil Fund, popular ETF trading under ticker ‘USO,’ plunges 38%, halted for trading at one point

    Weatherweenie's Account Talk
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  21. #11

    Default Re: Negative Oil?

    Quote Originally Posted by weatherweenie View Post
    US Oil Fund, popular ETF trading under ticker ‘USO,’ plunges 38%, halted for trading at one point
    Yet the XLE is down just 0.58%. Weird stuff.
    Tom
    Market Commentary | My Blog | TSP Talk Plus | |

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  23. #12

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    Default Re: Negative Oil?

    I'm sure they'll just do a few more reverse splits in USO and while they're at it, UNG. What a failed investment product.

    Here we go. Remember when the MBS market collapsed and we found out all the companies running blatant frauds? Here's one for the oil market. $800 million in unaccounted derivative losses.

    HSBC, ABN Amro and Société Générale are among a group of banks owed almost $4bn by Hin Leong, the Singapore oil trader scrambling to restructure its finances as a brutal downturn hits energy markets.

    HSBC has the biggest exposure to Hin Leong at $600m, followed by ABN Amro at $300m, while Société Générale has lent the company $240m. In total, around two dozen banks are owed $3.85bn by the company.
    https://www.ft.com/content/437b8e53-...0-0d5860706bd8

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