Gas Prices
- Thread starter Iowa 409 Guy
- Start date
$ 1.99 today if this keeps up soon it will be free on the Isle of Long$2.01 today on the Isle of Long
I don't know if anyone else noticed but oil closed at .26 cents per barrel today and at one point it was a negative $37.00 per barrel. How does that work? Recently I have been joking that pretty soon they will be paying us to fill up, that joke is looking like there may be some truth to it. WTF is going on, this can't have a good ending to it.
They should be paying us to fill up. Makes me laugh, when they say there MIGHT be a storm that COULD disrupt oil the prices at the pump jump up $.50/gal immediately, but as the crude price drops the pump stays the same.
1.31 in Columbia 
Oil pricing per barrel dropped $ 55.90 in a day for WTC, ending at $ - 37.60, futures for May
unfortunately where energy prices go so does the economy, we won't be saying remember 1929 any more it will be remember 2020.
Oil is at the point where there is not enough storage to put it in, either leave it in the ground or pump it back in the ground.
unfortunately where energy prices go so does the economy, we won't be saying remember 1929 any more it will be remember 2020.
Oil is at the point where there is not enough storage to put it in, either leave it in the ground or pump it back in the ground.
Prices go up tomorrow until May 20th when they do June futures. But not where they once were.
Junky
Well Known Member
Trump last night has offered to all the oil companies to use the National Strategic Reserve to store the oil, or at least that is what it sounded like. He was rambling on about the Congress not allowing him to purchase oil to replenish the Reserve, in response to a question from one of the reporters. Trump explained that it was some investors got caught short and were trying to cover their losses. Investing in the commodity market is not for the faint of heart. You can go from a millionaire to a pauper in minutes.
Funny how no one seems to know who is making money when oil is in the negetive. My guess is the refinery is making billions off of this situation. They pay nothing for product they can charge $1 for a gallon. LOL! What a scam! How do I get in the game?
If you have room to store crude, you can buy it, but you have to wait until demand picks up to sell and make money. I think all parts of the oil business, including refineries, are losing big bucks right now. I last filled my car March 22, still have half a tank.
There are 3 layers to the oil business, refineries at one end, producers at the other, a bunch of oil traders in the middle. Some big companies, Exxon, etc, do it all. The traders are basically speculators, they buy oil for a future delivery time from producers, hold that “paper oil”to sell to refineries at a profit when the delivery date comes up. They never plan to take delivery of the paper oil. When demand falls off a cliff and storage is basically full, the price drops. The traders have to find someone who will take delivery since traders don’t own storage. In this market they couldn’t find anyone who could take delivery who wanted it, until they offered to pay $38 a barrel to get someone to haul it away. Lasted for about 24 hours or less. If you were a refinery and or had storage, you had the opportunity of a lifetime to make a lot of money. Once you can find a buyer.
Refineries are a big monopoly, they keep capacity to refine under control in the world to keep their profit margins healthy. How often do you see a new refinery built? But they can’t control demand or supply. It is rare they are not profitable but this is one of those times.
There are 3 layers to the oil business, refineries at one end, producers at the other, a bunch of oil traders in the middle. Some big companies, Exxon, etc, do it all. The traders are basically speculators, they buy oil for a future delivery time from producers, hold that “paper oil”to sell to refineries at a profit when the delivery date comes up. They never plan to take delivery of the paper oil. When demand falls off a cliff and storage is basically full, the price drops. The traders have to find someone who will take delivery since traders don’t own storage. In this market they couldn’t find anyone who could take delivery who wanted it, until they offered to pay $38 a barrel to get someone to haul it away. Lasted for about 24 hours or less. If you were a refinery and or had storage, you had the opportunity of a lifetime to make a lot of money. Once you can find a buyer.
Refineries are a big monopoly, they keep capacity to refine under control in the world to keep their profit margins healthy. How often do you see a new refinery built? But they can’t control demand or supply. It is rare they are not profitable but this is one of those times.
Isn't the refineries profit margin always the same, but with the number of gallons refined going down, their total amount of net profit decreases?
I'm in the drilling industry on the service side. It's a field that I absolutely love. Being on a rig reminds me of being at the races with the generators running and cool stuff to work on. That said, it's about over.
Once the prices started to fall my customers immediately began returning all the equipment they leased from us. We're nothing but a skeleton crew after the layoffs.
I figure we'll hang on for a month or so but in all likelihood i'll be starting a career in another field. No regrets though, everyone knows how cyclical the oil filed is, but no one counted on this double whammy.
Once the prices started to fall my customers immediately began returning all the equipment they leased from us. We're nothing but a skeleton crew after the layoffs.
I figure we'll hang on for a month or so but in all likelihood i'll be starting a career in another field. No regrets though, everyone knows how cyclical the oil filed is, but no one counted on this double whammy.
the oil and gas industry is approx 5 percent of the employed. so a lot of good jobs are gone for now.
refineries are very expensive to build and they have to have maintenance at least once a year.
also the epa laws are so restrictive, it does not pay to build new ones. jmho jim
refineries are very expensive to build and they have to have maintenance at least once a year.
also the epa laws are so restrictive, it does not pay to build new ones. jmho jim
1.27 today in town., I had to get some of that. 