The Oil Market Has Cratered

Not only has it crashed, it bored into the ground like a drilling rig.

 

Breaking News
Apr. 20, 2020

Oil price collapses to below zero as demand takes a dive during pandemic

The U.S. oil price collapsed to below zero for the first time ever as the deepening economic turmoil caused by the coronavirus crisis left traders desperate to avoid taking delivery of physical crude.

Remember $100 a barrel and $5+ a gallon gas?

There is so much oil on the market right now they literally don’t have any place to put it.

All the storage facilities are full to capacity and they are storing it on tankers sitting out in the ocean.

This will be good for Joe Six Pack when the price at the pump starts reflecting this but it will wipe out Fracking completely.

This is the objective in the first place.

Marginal operations will go tits up and be swept away like chaff in the wind.

Then OPEC and the rest of the big oil producers can go back to rigging the price of oil as they see fit.

13 thoughts on “The Oil Market Has Cratered

  1. Don’t think so, Phil. That is probably the play; but tempers are beginning to fray. The western petroleum economy will not be run into the dirt by ragheads, and in North America we don’t have to (nor will we) take this level of shite off them. We now need energy independence now more than ever. That goes for other industries as well. The global economy won’t work… and that means a lot of long term changes. We can’t keep importing third world trash for cheap labour, and we can’t keep offshoring our production. We are seeing the first stages of economic realignments… and possibly the run up for WW3…

    Liked by 1 person

    • “[US petroleum production] run into the dirt by ragheads”

      Ragheads? Maybe. But who really gets hurt the worst if the US is no longer interested in the Middle East? Who needs the US spending its treasure and the lives of its best people in the shitheaded eternal feuds of desert shitheads? It’s not the headrag-wearing shitheads.

      Liked by 1 person

  2. Temporary tradeing at neg spot price due to speculation traders unable to take acutal delivery of barrelss of oil on expiring contracts. These are paper traders sitting at their computers getting fucked, good , derivative and futures trades have screwed the markets for too long now. Oil will rebound tomorrow but we need to end this intentional destruction of our economy and get back to 50 -60 per barrel to ensure energy independence.

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  3. Yep.
    No demand.
    Kungflu has fucked all of that.
    Well the rest of the world’s .gov also.
    Putting me out of a job soon.
    I’ll now have nothing better to do than to foment and raise little revolutionaries.
    should be fun

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  4. Driving through south Illinois while going to see the grandkids in Kansas City, we go past wells that are idle when prices are low, and active when they go up.
    I suspect that frackers can put wells on standby while prices are low, then pick up again as needed. The ones that overextended themselves during the boom will bail, but the know-how is out there now. The Saudis will not be able to get their old monopoly back.

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  5. Wholesale gasoline is 12 cents/gallon, the lowest ever (inflation adjusted). The market is glutted because the stupid Saudis and Russians decided to have a dick-measuring contest to see how they could flood the world with oil. So they did. Negative oil prices, like today (as Don Cornelius pointed out) means they’ll pay anyone to take the oil, but the storage is all taken up. No demand because the world is shutdown, and nobody is traveling.

    Liked by 1 person

    • Well, since the Saudis started this whole thing back in ’73, I think it’s wholly appropriate they get their little dickies burnt assing around with the world economy.

      Just thinking about a phrase I heard when the moslems started getting frisky and blowing shit up, haven’t heard much since: “We didn’t have any trouble with these fuckers when oil was eight dollars a barrel.”

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  6. I called to top off the farm tanks with 2000 gallons of diesel today, was quoted $1.27 gal. For red dye farm fuel here in CA. She said diesel was okay but gas was going UP 8 cents tomorrow! No oil able to be delivered to the refineries or some BS, keep on screwing us.

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  7. “Then OPEC and the rest of the big oil producers can go back to rigging the price of oil as they see fit.”
    Our frackers will then move in and resume operations. The oil is sitting there, and we can adapt and overcome if the ragheads start getting stupid again. We are a helluva lot more flexible that the one-trick-pony sand huggers.

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