OPEC Agrees to 10M🛢 cut - the gas price boredom thread

Off-Ramp
68

Welll…refiners still have to make it into gas. I can’t imagine they will pass all the savings on.

Next: anything that uses an energy source other than dead dinosaurs that carries a price premium for that will start to price that in.

If this goes on and there is no place to store the oil coming out of the ground, guess what happens to those producers?

69

At -40, it will cover the cost/margin for refiners to offer free gas, tax only at pump

70

Sweet, in California it might dip under $2/gallon then

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71

That would never happen unless America nationalizes it and turns into Venezuela. Nothing is off the table at this point though…

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72

Unlikely. On those negative contracts they either have to take delivery in person or settle the loss.

73

34 posts were merged into an existing topic: Off Topic Landfill 2

74

Judging by price action, I would say 40 is the current cost of storage and sellers intend to deliver. A smart refiner will make a fortune, greedy ones will be sitting on their hands.

76

I didn’t mean that as a govt policy, just the effect of market pricing. But you are right in “Nothing is off the table at this point though…”

77

The barrel (in use) costs 100, the oil inside is 0, the storage is more, labor and transport. I wouldn’t read too much into the negative price, oil is not like the crops that are just being tilled back into the soil. It’s the CME version of GFY.

The Fed can’t control it now any more than they did when it slid into the 6000s. The current market levels are artificially high because of stimulus but that doesn’t change what’s under them.

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81

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Lest we forget, this was also the 10-year anniversary of Deepwater Horizon.

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82

plunging 305 percent to a record low -$36.73 per barrel. At a price below zero, buyers would be paid to take delivery as there are costs associated with transportation and storage.

How much does it cost to lease an oil tanker?

83

Everyone do your part to stablize prices

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85

Regular at Costco is now $1.35 :star_struck:

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86

$2.45 Costco SoCal :face_vomiting:

87

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Difference in gas tax is about $0.50 between AK and CA

Guessing the other $0.50 is for sun and surf

88

Or most of Alaska doesn’t need the gas to be shipped too far?

89

Time to get back in?

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90

No thanks. I’ll stick with tax law!

91

And not even 60 days later, after a month where WTI went negative, 91 is back to $3.39/gal. Funny how quickly equilibrium returns.

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92

Yikes… not looking good