Amazing how, with Western countries staring down the barrel of a horrible recession and policymakers clueless, the free market comes up with some help.
On No Deal if deal means extension point. Fishermen, the ultimate Brexit icon, are absolutely desperate right now because their markets (mostly in the EU) have dried up due to coronavirus. I wonder if the prospect of that situation becoming permanent because of Brexit No Deal will concentrate minds a bit.
It is not No Deal, the Withdrawal Agreement was the Deal and has passed.
It is not correct to say ending the transition period before a FTA has been agreed with the EU is No Deal
Of course it’s correct. No deal is no deal, regardless of whether its before or after the transition period.
Wrong, No Deal would have meant a hard border with the Republic of Ireland, no guarantee for citizens' rights and the EU refusing to even start FTA talks with us or grant a transition period
US oil companies are willing to pay buyers to store the oil rather than shut down their oil wells which is very costly. These are May deliveries and oil storage in the US is already close to being at capacity so storage companies need to be paid to take more.
It costs more for companies holding oil that nobody wants or needs right now, in remote places like Alaska, to store it than to pay someone to take it off their hands.
If you were a supermarket could you buy and store crude at a negative price, sell it to a refiner at zero for a profit, and use the money as a sweetener to attract shoppers with deeply discounted petrol?
Oil.settled at $37.63 negative..just think abt that
It's gone all the way to -$37.63?
Yes
The plots are showing it only at -$0.05?
The graph was taken when it went negative. It went further negative after that.
Ah yes, I see it now. I would have thought it being at -$30 would be far more newsworthy than -$0.05!!
Yes and no.
The idea of it being negative for the first time ever was major news. How negative it went then once that threshold was crossed is almost less newsworthy.
If you were a supermarket could you buy and store crude at a negative price, sell it to a refiner at zero for a profit, and use the money as a sweetener to attract shoppers with deeply discounted petrol?
I don't think so, because if you could do that they would be doing it, and the price wouldn't be so low.
If you were a supermarket could you buy and store crude at a negative price, sell it to a refiner at zero for a profit, and use the money as a sweetener to attract shoppers with deeply discounted petrol?
I don't think so, because if you could do that they would be doing it, and the price wouldn't be so low.
Maybe but why aren;t the refiners buying? maybe they are full too and can;t store
If you were a supermarket could you buy and store crude at a negative price, sell it to a refiner at zero for a profit, and use the money as a sweetener to attract shoppers with deeply discounted petrol?
How would the supermarket take delivery and transport it to the refinery? They'd need to pay someone.
If you were a supermarket could you buy and store crude at a negative price, sell it to a refiner at zero for a profit, and use the money as a sweetener to attract shoppers with deeply discounted petrol?
I don't think so, because if you could do that they would be doing it, and the price wouldn't be so low.
Maybe but why aren;t the refiners buying? maybe they are full too and can;t store
Didn't the Saudi's massively ramp up production? That, and the massive collapse in demand for the refined product is probably not helping.
It costs more for companies holding oil that nobody wants or needs right now, in remote places like Alaska, to store it than to pay someone to take it off their hands.
I feel a correction upwards may happen.
Is there really so big of a cost in shutting wells down?
If you were a supermarket could you buy and store crude at a negative price, sell it to a refiner at zero for a profit, and use the money as a sweetener to attract shoppers with deeply discounted petrol?
I don't think so, because if you could do that they would be doing it, and the price wouldn't be so low.
Maybe but why aren;t the refiners buying? maybe they are full too and can;t store
Why wouldn't they be full?
They can stop/slow buying and shut down/slow the refineries easier than the pumps can be shut down then restarted.
It costs more for companies holding oil that nobody wants or needs right now, in remote places like Alaska, to store it than to pay someone to take it off their hands.
I feel a correction upwards may happen.
Is there really so big of a cost in shutting wells down?
It would appear that the IT behind the online Furlough applications has held up well today and according to the BBC the application process is fairly straightforward. Assuming the actual money comes through as promised this will have been a considerable delivery success for Sunak.
It costs more for companies holding oil that nobody wants or needs right now, in remote places like Alaska, to store it than to pay someone to take it off their hands.
I feel a correction upwards may happen.
Is there really so big of a cost in shutting wells down?
Yes.
I presume you're replying to the latter question. In layman's terms why can't you just turn off the tap?
Amazing how, with Western countries staring down the barrel of a horrible recession and policymakers clueless, the free market comes up with some help.
It often does - "barrel" (very good).
I never thought I would ever see a negative oil price - as I remarked earlier, cheap fuel will be a huge help to mitigate inflationary pressures and with plenty of people looking for work (6 million or more according to someone on here earlier), you'd think inflation would be the least of worries.
With low interest rates and low inflation, the deficit and debt management should be a lot easier if we continue to need to have to borrow.
I saw it and thought - ooh, he has the same name as Lloyd Cole. It didn't occur to me it would be THE Lloyd Cole. It honestly didn't occur to me he'd have elevated himself to a position of economics commentator.
Honestly, the past ten years have taught me nothing.
It costs more for companies holding oil that nobody wants or needs right now, in remote places like Alaska, to store it than to pay someone to take it off their hands.
I feel a correction upwards may happen.
Is there really so big of a cost in shutting wells down?
Yes there is a big cost, June deliveries are currently $21 per barrel, but with May storage already full and no real sign of the lockdown being lifted it may go down fairly quickly and cause a lot of insolvency within the US shale industry.
I saw it and thought - ooh, he has the same name as Lloyd Cole. It didn't occur to me it would be THE Lloyd Cole. It honestly didn't occur to me he'd have elevated himself to a position of economics commentator.
Honestly, the past ten years have taught me nothing.
Well, the good news is that you become less worried about being an old fool. The bad news is that you do in fact become an old fool.
I saw it and thought - ooh, he has the same name as Lloyd Cole. It didn't occur to me it would be THE Lloyd Cole. It honestly didn't occur to me he'd have elevated himself to a position of economics commentator.
Honestly, the past ten years have taught me nothing.
It costs more for companies holding oil that nobody wants or needs right now, in remote places like Alaska, to store it than to pay someone to take it off their hands.
I feel a correction upwards may happen.
Is there really so big of a cost in shutting wells down?
Yes.
I presume you're replying to the latter question. In layman's terms why can't you just turn off the tap?
Yes I was.
In layman's terms its very expensive to get it shut down safely and legally, then very expensive to get it restarted afterwards.
I saw it and thought - ooh, he has the same name as Lloyd Cole. It didn't occur to me it would be THE Lloyd Cole. It honestly didn't occur to me he'd have elevated himself to a position of economics commentator.
Honestly, the past ten years have taught me nothing.
I was due to see him in concert before Covid-19 intervened.
Makes me have a wry smile when anyone suggests the UK is having a bad response to the virus, when you see what's happening in nations like Spain - nothing like that is happening over here.
I saw it and thought - ooh, he has the same name as Lloyd Cole. It didn't occur to me it would be THE Lloyd Cole. It honestly didn't occur to me he'd have elevated himself to a position of economics commentator.
Honestly, the past ten years have taught me nothing.
I was due to see him in concert before Covid-19 intervened.
"1. You rule by surveillance. You wouldn't be president without surveillance. You monitor everything, every citizen, but you refuse to monitor the diseased wet markets in your country. You shut down every newspaper and website that is critical of your rule, but not the stalls where bat soup is sold. You are not only monitoring your people, you are endangering them – and with them, the rest of the world.""
I saw it and thought - ooh, he has the same name as Lloyd Cole. It didn't occur to me it would be THE Lloyd Cole. It honestly didn't occur to me he'd have elevated himself to a position of economics commentator.
Honestly, the past ten years have taught me nothing.
He could be joking. He does a lot on twitter. Then again he has been a massive Bernie fan.
It costs more for companies holding oil that nobody wants or needs right now, in remote places like Alaska, to store it than to pay someone to take it off their hands.
I feel a correction upwards may happen.
Is there really so big of a cost in shutting wells down?
Yes.
I presume you're replying to the latter question. In layman's terms why can't you just turn off the tap?
Maybe everyone is hoping the others will shut production first. I think something like this happened before when the Saudis hoped to drive American shale oil producers out of business by forcing prices down. Instead of which those producers found ways to reduce cost and stayed in business.
Comments
Can someone explain this to me?
You would never see "no blacks" signs in China
oh wait......
https://twitter.com/YouGov/status/1252264351723110400?s=20
https://twitter.com/YouGov/status/1252249517208018944?s=20
https://twitter.com/YouGov/status/1252236927161364482?s=20
The idea of it being negative for the first time ever was major news. How negative it went then once that threshold was crossed is almost less newsworthy.
Is there really so big of a cost in shutting wells down?
They can stop/slow buying and shut down/slow the refineries easier than the pumps can be shut down then restarted.
Last call for tonight's Risk game!
Tories ahead 62% to 24% in the South, 57% to 30% in the Midlands and Wales, 51% to 42% in the North and 27% to 21% in Scotland (the SNP on 41%).
Labour ahead by 47% to 41% in London
https://yougov.co.uk/topics/politics/articles-reports/2020/04/20/voting-intention-con-53-lab-32-16-17-apr
I never thought I would ever see a negative oil price - as I remarked earlier, cheap fuel will be a huge help to mitigate inflationary pressures and with plenty of people looking for work (6 million or more according to someone on here earlier), you'd think inflation would be the least of worries.
With low interest rates and low inflation, the deficit and debt management should be a lot easier if we continue to need to have to borrow.
https://youtu.be/_9k-5073270
People need freedom and work, so let’s safely start to lift the lockdown.
Rob Lyons"
https://www.spiked-online.com/2020/04/20/its-time-to-ease-the-lockdown/
Honestly, the past ten years have taught me nothing.
In layman's terms its very expensive to get it shut down safely and legally, then very expensive to get it restarted afterwards.
Cheaper to just pay someone to take the oil away.
Makes me have a wry smile when anyone suggests the UK is having a bad response to the virus, when you see what's happening in nations like Spain - nothing like that is happening over here.
Quote:
"1. You rule by surveillance. You wouldn't be president without surveillance. You monitor everything, every citizen, but you refuse to monitor the diseased wet markets in your country.
You shut down every newspaper and website that is critical of your rule, but not the stalls where bat soup is sold. You are not only monitoring your people, you are endangering them – and with them, the rest of the world.""
https://www.bild.de/politik/international/bild-international/bild-chief-editor-responds-to-the-chinese-president-70098436.bild.html
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