Oil plunges 39% to 21-year low, hits below $11/barrel

BleedGopher

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per Saloni:

Oil plunged to a more than 21-year low on Sunday. The commodity's latest round of sharp selling comes as uncertainty mounts around storage for excess oil. Demand for crude has plummeted since the coronavirus outbreak has frozen activity worldwide.

West Texas Intermediate crude oil plunged as much as 39% to $11.20 a barrel, its lowest price since December 1998 and biggest intraday drop since at least 1982.


Go Stable Economy!!
 

Section2

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per Saloni:

Oil plunged to a more than 21-year low on Sunday. The commodity's latest round of sharp selling comes as uncertainty mounts around storage for excess oil. Demand for crude has plummeted since the coronavirus outbreak has frozen activity worldwide.

West Texas Intermediate crude oil plunged as much as 39% to $11.20 a barrel, its lowest price since December 1998 and biggest intraday drop since at least 1982.


Go Stable Economy!!
That's scary stuff.
 

Face The Facts

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Remember a dozen years ago when emails would go around... "If everyone doesn't buy gas on April 27th, the oil industry would crumble and prices will decrease immediately. All we need to do is to make sure no one buys gas for ONE DAY".

Seems like it's been more than one day.
 

Section2

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Remember a dozen years ago when emails would go around... "If everyone doesn't buy gas on April 27th, the oil industry would crumble and prices will decrease immediately. All we need to do is to make sure no one buys gas for ONE DAY".

Seems like it's been more than one day.
I remember those emails. They all failed economics.
 

LesBolstad

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I wonder if few working or driving in the World is impacting oil prices?
 

Panthadad2

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I wonder if few working or driving in the World is impacting oil prices?

Nobody driving. Nobody flying. Etc. The decline in demand is unprecedented. Many oil producers, especially medium and small sized, are funded with debt. Those companies are toast. The banks and bondholders lending to them could be toast too.

"In its closely observed monthly oil-market report, the IEA projected that demand for crude would drop in April by 29 million barrels a day to levels not seen in a quarter of a century. That would equate to roughly 29% of the world’s 100-million-barrel daily oil-demand figure from 2019...

“When we look back at 2020, we may see it was the worst year in the history of oil markets and the second quarter may have been the worst of the lot,” said Fatih Birol, the IEA’s executive director. “In that quarter, April may have been the worst month. It may go down as ‘Black April’ in the history of the oil industry.”"


https://www.wsj.com/articles/oil-demand-projected-to-fall-by-record-amount-11586940434
 

LesBolstad

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So much for electric cars the next decade with free gasoline.
 

TruthSeeker

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Oil companies will soon start paying us to take their oil.
 

Veritas

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Already have one. Still planning to be another in a couple years.

I owned, at some cost to me, a hybrid for 10 years. Then the DFL types figured out that I should pay a special road usage tax for having committed the unforgivable sin of not giving the state enough money through the gasoline tax. Fortunately, that did not pass here, but the DFL is still working on it. "No good deed (buying a hybrid) should ever go unpunished." Never again will I get suckered into doing "the right thing for the environment".
 

justthefacts

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I owned, at some cost to me, a hybrid for 10 years. Then the DFL types figured out that I should pay a special road usage tax for having committed the unforgivable sin of not giving the state enough money through the gasoline tax. Fortunately, that did not pass here, but the DFL is still working on it. "No good deed (buying a hybrid) should ever go unpunished." Never again will I get suckered into doing "the right thing for the environment".

Leaving your grandkids a damaged planet to own the libs.
 

saintpaulguy

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I owned, at some cost to me, a hybrid for 10 years. Then the DFL types figured out that I should pay a special road usage tax for having committed the unforgivable sin of not giving the state enough money through the gasoline tax. Fortunately, that did not pass here, but the DFL is still working on it. "No good deed (buying a hybrid) should ever go unpunished." Never again will I get suckered into doing "the right thing for the environment".
There's a lot to unpack here.
 

TruthSeeker

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I owned, at some cost to me, a hybrid for 10 years. Then the DFL types figured out that I should pay a special road usage tax for having committed the unforgivable sin of not giving the state enough money through the gasoline tax. Fortunately, that did not pass here, but the DFL is still working on it. "No good deed (buying a hybrid) should ever go unpunished." Never again will I get suckered into doing "the right thing for the environment".
You should have to pay some kind of fee to maintain the roads. Are you a freeloader?
 

howeda7

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I owned, at some cost to me, a hybrid for 10 years. Then the DFL types figured out that I should pay a special road usage tax for having committed the unforgivable sin of not giving the state enough money through the gasoline tax. Fortunately, that did not pass here, but the DFL is still working on it. "No good deed (buying a hybrid) should ever go unpunished." Never again will I get suckered into doing "the right thing for the environment".
Do you go the extra mile and throw your trash out the car window whenever possible?
 

justthefacts

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Don't worry, everyone. Trump and MBS got together and decided to lower oil prices, and then raise them, and the reduce them again.

T0tmupT.png
 

BleedGopher

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Oil is now at $1.28, down 92% today.

Go Gophers!!
 

El Amin Fan

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Don't worry, everyone. Trump and MBS got together and decided to lower oil prices, and then raise them, and the reduce them again.

T0tmupT.png

Oil at sub $2 is all part of Trump's master plan as CRG's notes. Trump is playing chess while everyone is playing checkers.
 

Section2

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93% drop in the most important resource on the planet. But testing! Dunk on CRG!!
 

El Amin Fan

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Oil at about a quarter a barrel. I have a few quarters in my pocket, I'm going to buy a few barrels.
 

Section2

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Oil hit NEGATIVE $40 a barrel. Meaning, oil companies will pay you $40 to take a barrel of oil. I can't believe stocks are not panic selling. This is incredible. the Middle east, Venezuela, Texas, North Dakota, CRUSHED
 

Panthadad2

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The May contract for oil is now $-18 per barrel.

Edit: I was late. It's crashing further.
 

TruthSeeker

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Oil hit NEGATIVE $40 a barrel. Meaning, oil companies will pay you $40 to take a barrel of oil. I can't believe stocks are not panic selling. This is incredible. the Middle east, Venezuela, Texas, North Dakota, CRUSHED
The stock market makes no sense right now.
 

Panthadad2

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Did you take any action to raise the price? I did. I bought some USO today.

If you buy USO, don't hold it longer than a couple weeks. It has massive built-in price erosion right now due to contango in the oil market (because of the way it's structured). If you don't mind less liquidity, USL would be a better structured ETF if you need to hold longer than that.
 
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