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

Veritas

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Agree mostly.

In this particular case, Cases is keeping the prices inflated. Demand is waaaaaay down and supplies are waaaaaaay up.

Caseys is hammering the customer.

Why are you buying there in that case? Isn't it your job to seek the best deal possible? Not their's.
 

Deleted_User

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In these days of Covid, it is not so much do you want a donut with your gas as it is do you want gas with your donut.
 

BarnBurner

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Why are you buying there in that case? Isn't it your job to seek the best deal possible? Not their's.
Like to do business locally, when at all possible. And yes, I try to find the best deals.

However, a week or so ago the price 20 miles away was .45 a gallon cheaper. Not sure why you are arguing that Caseys is hammering the crap out of people in this case.
 

Veritas

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Like to do business locally, when at all possible. And yes, I try to find the best deals.

However, a week or so ago the price 20 miles away was .45 a gallon cheaper. Not sure why you are arguing that Caseys is hammering the crap out of people in this case.

I'm sorry, I am not.
 

stocker08

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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.

I suggest dumping USO prior to next Tuesday (the 28th). They are scheduled for a 8-1 reverse stock split. After that happens....I anticipate that just like UCO.....it's going to take a massive dive.

Also worth noting that for the second day in a row....the fund put a hold on trading so that they could change up their structure by pushing their future contract investments out further. Pretty desperate move.
 

Panthadad2

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I suggest dumping USO prior to next Tuesday (the 28th). They are scheduled for a 8-1 reverse stock split. After that happens....I anticipate that just like UCO.....it's going to take a massive dive.

Also worth noting that for the second day in a row....the fund put a hold on trading so that they could change up their structure by pushing their future contract investments out further. Pretty desperate move.

Agreed. I own puts in USO. It's not something I want to be long in AT ALL right now. Oil will eventually go up of course, but USO is a poor place to park money. Once USO starts rolling out of the June contract to July, it's probably going to take another big hit again like it has the past few days (May to June contracts).
 

stocker08

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Agreed. I own puts in USO. It's not something I want to be long in AT ALL right now. Oil will eventually go up of course, but USO is a poor place to park money. Once USO starts rolling out of the June contract to July, it's probably going to take another big hit again like it has the past few days (May to June contracts).

Eventually it will rise. It's just hard to say how long it will be until that happens. And with the reverse split coming....I'd say get out completely prior....watch the post split shares tumble in price as investors panic and sell....and snag it when it bottoms out. I think it might be a good opportunity to buy it artificially low before the price corrects itself.

Again....I'm basing this partially off of UCO, which had a 20-1 reverse spilt this past week. Shares tumbled all the way down from $24 post split to $11/sh. Corrected back up to around $17 and currently sit around $15.50/sh.
 

Section2

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We are at a critical point for the oil industry. It is very expensive to shut down and start up a refinery. They are running as low production as possible. We are getting close to oil production just shutting down. Another casualty. There had to have been some catastrophic trading losses this week. This is unprecedented.
 

MplsGopher

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We are at a critical point for the oil industry. It is very expensive to shut down and start up a refinery. They are running as low production as possible. We are getting close to oil production just shutting down. Another casualty. There had to have been some catastrophic trading losses this week. This is unprecedented.
Electric cars. Get rid of plastics.

I guess the Earth is the big winner.
 

Panthadad2

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We are at a critical point for the oil industry. It is very expensive to shut down and start up a refinery. They are running as low production as possible. We are getting close to oil production just shutting down. Another casualty. There had to have been some catastrophic trading losses this week. This is unprecedented.

Some big investment funds must have been caught totally on the wrong side of the trade on Monday. It's my understanding that the huge oil ETFs like USO had to contractually sell out of the May contract on Monday too which helped drive it down further. Ouch.
 

Section2

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Some big investment funds must have been caught totally on the wrong side of the trade on Monday. It's my understanding that the huge oil ETFs like USO had to contractually sell out of the May contract on Monday too which helped drive it down further. Ouch.
Unlike equities, futures contracts are zero sum. I imagine there were people assuming zero was the limit. The move to negative 40 probably destroyed some large funds. It will probably be worse next month.
 

Panthadad2

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Electric cars. Get rid of plastics.

I guess the Earth is the big winner.

Electric cars? Probably someday. However, the lower the price of oil and gas, the farther that gets pushed into the future. If you want energy production to switch to solar, wind, etc., then you want oil prices to go so high that consumers and investors want to switch to renewables - including moderate income populations globally.

Plastics? I don't know.
 

MplsGopher

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Electric cars? Probably someday. However, the lower the price of oil and gas, the farther that gets pushed into the future. If you want energy production to switch to solar, wind, etc., then you want oil prices to go so high that consumers and investors want to switch to renewables - including moderate income populations globally.

Plastics? I don't know.
Plastics are convenient, but they largely lead to throw-away products. How much do they really increase the quality of our lives? The plastic ends up in the ocean and doesn’t breakdown.

And my comments weren’t in regards to cheap oil, the post I quoted was talking about oil refineries closing.
 

howeda7

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Eventually it will rise. It's just hard to say how long it will be until that happens. And with the reverse split coming....I'd say get out completely prior....watch the post split shares tumble in price as investors panic and sell....and snag it when it bottoms out. I think it might be a good opportunity to buy it artificially low before the price corrects itself.

Again....I'm basing this partially off of UCO, which had a 20-1 reverse spilt this past week. Shares tumbled all the way down from $24 post split to $11/sh. Corrected back up to around $17 and currently sit around $15.50/sh.
I bought some at 3.30. Debating dumping it and taking the loss or just keeping it long term. Not enough to really worry about either way.
 

KD6-3.7

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Gas should be selling for under $1 per gallon.
the last time gas prices were under a dollar was 1989. correcting for inflation that is $2.12 in today’s dollars.

gas will never be under $1 again
 

MennoSota

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I'm really, really confused on whether cheap gasoline is good or bad

As are all progressives with no understanding of even basic economics. Pretty sure Wally, MplsGopher, Howey, Jammer and a handful of others are all with you in your confusion.
But, hey, no pipeline so you got that going for you...which is nice...
 

MplsGopher

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Once again:
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Therefore, May 2011 - May 2014 there was no economic growth, right?
 

jamiche

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As are all progressives with no understanding of even basic economics. Pretty sure Wally, MplsGopher, Howey, Jammer and a handful of others are all with you in your confusion.
But, hey, no pipeline so you got that going for you...which is nice...
With no Phase Four we aren't creating significant additional environmental risk to export Canadian oil....which is nice, tiny.
 

justthefacts

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Here's a good thread to talk about:

A) Higher oil prices are now bad, having been good 15 months ago
B) Biden controls the price of oil on the global market

Have at it so you guys can talk about video of the border in the other thread.
 

KillerGopherFan

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John Kerry's Raging Climate Hypocrisy Exposed Again​


...John Kerry, President Biden’s special presidential envoy for climate change, held investments in oil companies prior to divesting from the stocks as he took over the position, according to financial forms.

Kerry's financial disclosure forms, which were obtained by Fox News, show that the former secretary of state was financially invested in numerous oil companies, including Duke Energy, Cimarex, Dominion Energy, Exelon Corporation and Valero Energy.

As Biden's climate envoy, he will push policies that run counter to his personal investments before taking over the post. At the same time that Kerry held investments in oil companies, he also worked with climate groups The Rise Fund, where he served as a senior adviser, and Climate Finance Partners, where he acted as chairman of the advisory board...
 
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