Oil price lowest in 20 years

[Ache4Acres]

Crazy 30% drop in early trading today.

[hobbyfrmr]

Seriously, I am concerned for Canada’s economy.
Canadian oil is as worthless as wheat.

[SASKFARMER]

Or should a guy take Trudeau's 40000 and buy oil?

Basically buy about 2300 Barrels of oil and wait.

If it goes up to back to normal you have 200000 and pay trudeau the 30000 back.

Leave Canada before because he will tax the shit out of it.

[sumdumguy]

Today must be the day to buy oil stocks, futures, physical. It can’t stay low forever. Oil, in our economy is Essential with a capital E. Those of us that haven’t been blinded by the Gore/Suzuki Light can still see The Real Light.

[foragefarmer]

That's the May futures which expires tomorrow, June contract is $22.00.

[fjlip]

Oil/Gas cheapest energy source! Low prices will KILL/DESTROY any and all "green scam" sources!

Cancel wind turbines, $$$ losing bigtime!

It's a great time !

[helmsdale]

There are some boys and girls getting BTFO on the may WTI contract... WOW! Close of contract is upcoming, and it's currently trading $-35.20!!!

[Rareearth]

There are some boys and girls getting BTFO on the may WTI contract... WOW! Close of contract is upcoming, and it's currently trading $-35.20!!!

So can a guy buy today at a whole sale rack at that price? Just wondering where those future delivery sites are, on ocean ports?

[helmsdale]

So can a guy buy today at a whole sale rack at that price? Just wondering where those future delivery sites are, on ocean ports?

WTI settles FOB Cushing Oklahoma

[malleefarmer]

Have to admit I’m having trouble getting my head around all this

[helmsdale]

Have to admit I’m having trouble getting my head around all this

See:

https://www.zerohedge.com/markets/here-full-explanation-behind-oils-unprecedented-negative-price https://www.zerohedge.com/markets/here-full-explanation-behind-oils-unprecedented-negative-price

and:

https://www.zerohedge.com/energy/heres-next-problem-where-do-100-million-oil-barrels-get-delivered https://www.zerohedge.com/energy/heres-next-problem-where-do-100-million-oil-barrels-get-delivered

I don't imagine there are alot of producers taking the spot price this late into the month, and there are a shit ton of speculators that are desperate to unload their paper barrels, or else they are going to become REAL barrels when the may contract settles (tomorrow afternoon I think).

[AlbertaFarmer5]

See:

https://www.zerohedge.com/markets/here-full-explanation-behind-oils-unprecedented-negative-price https://www.zerohedge.com/markets/here-full-explanation-behind-oils-unprecedented-negative-price

and:

https://www.zerohedge.com/energy/heres-next-problem-where-do-100-million-oil-barrels-get-delivered https://www.zerohedge.com/energy/heres-next-problem-where-do-100-million-oil-barrels-get-delivered

I don't imagine there are alot of producers taking the spot price this late into the month, and there are a shit ton of speculators that are desperate to unload their paper barrels, or else they are going to become REAL barrels when the may contract settles (tomorrow afternoon I think).

And I presume that if you don't have a tanker already booked to store it, taking delivery is a bit of a problem right now?

[helmsdale]

And I presume that if you don't have a tanker already booked to store it, taking delivery is a bit of a problem right now?

yea... 1 contract = 1000bbl. with 100K open interest, thats alot of swimming pools to fill in the hamptons.

[Hamloc]

That's the May futures which expires tomorrow, June contract is $22.00.

Certainly Forage you are correct but to me this illustrates the extreme demand destruction of the coved-19 pandemic. How will this affect countries that depend on oil revenue including Canada and their ability to pay the bills? As Canadian farmers we depend on the ability to export our commodities, look at how the closures at meat processing facilities have affected prices, how restaurant closures are affecting demand. Volatility like this one day drop in oil prices could become the new normal and certainly increases the risk level as we prepare to plant our crops. I for one have always felt confident that if I wanted all my crops could be sold in a timely manner, this may not be the case in the near term. Certainly interesting times.

[Ache4Acres]

Spot price is certainly close to zero right now. I guess we will know in a few days as June futures become the new measuring stick. They are set for a vert rough couple weeks and quite possibly go negative as well.

I still don’t fully understand all the consequences here but trump sure looked sick on the daily talk.

I am scared to say it but war is possibly the way this is settled. Close the straight of Hormuz entirely.