Crude Oil Collapses Epically

originally posted by: andy06shake
a reply to: burdman30ott6

Would that not mean they pay you "a buck-ninety" for taking a barrel off their hands?

Frightening all the same levity aside.

In theory, yes... what it actually means is they're prepared to sit on the oil for another month. That's going to have a domino effect. June futures are presently +$20 a barrel... the May supply they're sitting on will steeply drop that price in late May. At some point it goes from dominoes to a house of cards that impacts multiple months down the road instead of just the next month's futures.

So who just went broke and does this point at a new Great depresion ?

originally posted by: burdman30ott6
Gold is slowly dropping now. It's bizarre to see oil plummeting and gold not soaring in response. To me that indicates a dark omen.

Means the well is dry, no pun intended.

Faith in the USD could be a major part.


I mean we just printed 2 trillion more.

a reply to: JinMI

Faith in the USD could be a major part. I mean we just printed 2 trillion more.

last time this happened didnt the currency go down the well. Are things different now I dont know. Didnt trump just nationalise the federal reserve. Sounds a bit socialists does it not.

Can we just print money without consequence. ?

originally posted by: purplemer
a reply to: CriticalStinker

It's more likely that there will be bailouts and further conglomeration. Probably more of the latter.

I am sure there will be. But look at what energy systems are still thriving and working.

Renewables its the way to go. If you want to bailout the extinction of the dinosaurs go for it.

This isn't about what I want... It's about where we're at and what's more likely.

We still need battery technology to catch up before replacing fossil fuels. Charge time and range needs work... Also, how green is extraction of lithium and discarding?

I'd say let the free market decide... But too many want to load the deck on either side of this one.

originally posted by: AugustusMasonicus
a reply to: burdman30ott6

Take a look, backwardation.

So with June and July trading at $20 a barrel, if I understand this correctly, with May settling at -$37, we'd be looking at that point of equality pushing out to late July/early August at the earliest?

a reply to: whiteblack

Invest what?

originally posted by: burdman30ott6
So with June and July trading at $20 a barrel, if I understand this correctly, with May settling at -$37, we'd be looking at that point of equality pushing out to late July/early August at the earliest?

It appears June from what I've been seeing.

originally posted by: Gargoyle91
So who just went broke and does this point at a new Great depresion ?

Economic collapse!

originally posted by: purplemer
You could try sticking to the topic and addressing my questions or points.

I have, I'm the one that pointed out this is called backwardation and not the one discussing global warming or making uneducated comments about petrodollars.

a reply to: purplemer

Sure, until you realize all the things that are made from oil and all the things you'll lose. Then you'll realize how inexplicably ridiculous it sounded to suggest that a collapsed oil industry is a good thing.

a reply to: purplemer

Why do you think the USA exerts force upon nations to trade oil in the dollar?

I'm sure we lobbied to get the USD to be the currency of choice... But when you're talking about trading oil futures, how many currencies are robust and stable enough to handle that?

a reply to: AugustusMasonicus

Like others and the OP I am relating to how this effects the economy. I have asked you twice now why the USA actively seeks nations to trade in the dollar. You dont seem to have the answer you pertain to.

Anyway let us hope something better comes from all of this. I know many are celebrating the death knells. For they are coming.

Time to move to something cheaper. more realiable and automated.

originally posted by: LSU2018
a reply to: purplemer

Sure, until you realize all the things that are made from oil and all the things you'll lose. Then you'll realize how inexplicably ridiculous it sounded to suggest that a collapsed oil industry is a good thing.

I am sure if you looked you would find alternatives for these products. You dont think there are viable alternatives to plastic for example.