Crude Oil

[Oliver88]

Starting to here talk of North American putting tariffs on all OPEC oil entering continent.
$40/barrel should be sufficient and the refineries in North American have no reason to import unethical oil from some of these dictatorships when North America is energy self sufficient.

[bucket]

I will say this.....at 5 dollars a barrel ..80.9 cents is much too high for a posted gas price locally....

And once the oil price starts to go up...what will gas prices be...

You would think the refiners would be locking it supplies for as long out as they could....

5 liters of gas buys a barrel of WCS....

[FarmJunkie]

This shit show has been coming for years. Commodities have tanked in the past and regenerate themselves again eventually. We’ve just been living high on the hog for so long we forget that the good times have to end to bring some reality to the situation. Just look what everything costs. Something needs to happen to reset the clock. Shud have happened in 08 but the baby boomers couldn’t stand to let their 401k’s and RRSPs and pensions go in the toilet so here we sit. Some of them now dead due to Corona no less. Print, print , print ain’t gonna fix this.

[MBgrower]

Oil was over $100/barrel for quite a while. Maybe tables have turned and wheat will goto $100 a bushel? Dreamer, but crazy things happen in a crazy world - Vive la Prairie!

$100 wheat would cause land prices, rent, fertilizer, and machinery values to skyrocket immediately. Lets say if wheat went to $100/bu, with an average yield of 60 bpa, that would be a gross of $6000/acre. In no time, our costs would jump to $5900/acre, so that we would be lucky to net $100/acre on an average year. So basically same net income as now, except we've increased our financial risk by many multiples, this is how it has always worked in the past, and i don't see things changing in the future.

[agstar77]

The Russians and Saudis have been left to run roughshod over the middle east by the Trump government. They are turning the screws to the worlds oil producers to drive them out of business. They will then cut oil supplies and raise the price to infinity and beyond.

[MBgrower]

You believe govt will allow us to keep it when every other sector is bleeding? Only those in politics will be keeping their wealth. Everything else will go to "the greater good"

Likely an export tax coming for Canadian grains?

[canolacrazy]

as erroll said we have moved from a time of relative low volatility to a crash. everything has now changed. no demand for oil, the world is ending as we know it. however when the Russians and Saudi's make an "arrangement", which they eventually will, and oil is shut-in world wide, the demand shock will be extreme. because the virus will subside, and people will get back to work.

[macdon02]

I agree that we are in a "new world" with government debt exploding, however, I believe that after a few years of mediocre returns in the ag sector, that worm is turning as this situation also ignites food shortages for a number of reasons, and investors turn to agricultural commodities from and away from other equities.

You believe govt will allow us to keep it when every other sector is bleeding? Only those in politics will be keeping their wealth. Everything else will go to "the greater good"

[bfl2008]

I am actually quite surprised the Saudi's and Russian's didn't do this a long time ago, particularly when North America was figuring out how to drill and frac shale/tight sand formations containing oil. The US went from a significant oil importer to basically self sufficient from what I understand. That is an incredibly successful story. Amazing what high prices do...eventually create their own demise and result is return to low prices.

Oil industry will come back again but not to the same degree as in the past, too much political/social pressure.

[canolacrazy]

I agree that we are in a "new world" with government debt exploding, however, I believe that after a few years of mediocre returns in the ag sector, that worm is turning as this situation also ignites food shortages for a number of reasons, and investors turn to agricultural commodities from and away from other equities.