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Started By
Message
4
Posted on 4/20/20 at 2:26 pm to GumboPot
quote:Nah, there are abandoned pipelines which have been pre-approved for temp storage. Those can be used without violating any laws.
put it in abandoned pipelines,
Talk about against the law.
Posted on 4/20/20 at 2:27 pm to LSURussian
With our economy currently shut down and oil dropping like this ... we're about to feel the effects for a very very long time. Hold onto your dicks, people. It's going to get rough.
This post was edited on 4/20/20 at 2:28 pm
Posted on 4/20/20 at 2:28 pm to GeorgeTheGreek
we should've just let nature run its course and had it thin the herd
Posted on 4/20/20 at 2:29 pm to ClampClampington
quote:
Demurrage on rail or vessel from sitting is ungodly expensive and one of the quickest ways that could bankrupt a commodity company
I'm not sure how it will work with railcars as the oil tanks are almost all privately owned (not owned by the railroads. If the reporting marks end with an X they are private) and simply collect mileage charges.
Posted on 4/20/20 at 2:30 pm to Choctaw
quote:June contracts are selling in the mid-twenties dollars today so, yes.
does this mean prices should start going back up after the contracts expire?
Posted on 4/20/20 at 2:31 pm to ClampClampington
There is a $51 carry (contango) between nearby contract months and the forward month is only worth $21. Guarantee (hopefully) I never type that out again
Posted on 4/20/20 at 2:35 pm to ClampClampington
do you think opening back up the airlines will have any significant effect or is it more to do with the 40% drop in people driving? im hoping this happens before August
This post was edited on 4/20/20 at 2:36 pm
Posted on 4/20/20 at 2:35 pm to BuckyCheese
Most intermediaries buy cars or unit trains from the railroad or secondary market, that's where things will get sticky as most are already being used for rolling storage
Posted on 4/20/20 at 2:35 pm to NC_Tigah
Never should have shut down!
Posted on 4/20/20 at 2:37 pm to NC_Tigah
I know nothing about oil, but can the US add to the strategic reserves with prices like this?
Posted on 4/20/20 at 2:37 pm to NC_Tigah
The left said we were gonna run out of oil by 2000. I guess they were wrong.
Posted on 4/20/20 at 2:38 pm to NC_Tigah
Welp, I guess i'll be fired soon!
Posted on 4/20/20 at 2:38 pm to Choctaw
In theory yes, but it will all be dependant on if businesses deem travel necessary. Also individuals, but I highly doubt airline traffic returns to anything close to normal short term regardless if they open up
Posted on 4/20/20 at 2:40 pm to ClampClampington
Absolutely. I didn’t get into it but the shipments have insurance policies also. Going to store that oil on a ship means insurance costs go way up. Also, just about every ship had product loss through evaporation unless they have a sophisticated vapor recovery system. Insurance, normal product loss, etc.,, are all part of the downward price on oil. Was trying to keep it relatively simple.
Posted on 4/20/20 at 2:43 pm to Jake88
Absolutely. You are spot on.
Posted on 4/20/20 at 2:44 pm to Tridentds
quote:400K Bbls of cargo offloading at -$35/Bbl would cost $14million.
In 90 days you are talking $3M to $4M in day rates for the ship
At these prices, this is not a physical pblm with storage/transport.
It is a paper problem.
As Russian said, this is coming from panicked nerds sitting at their cubicle desk in a shirt and tie, sacred to death they'll get a call asking where they want the oil delivered.
This post was edited on 4/20/20 at 2:46 pm
Posted on 4/20/20 at 2:53 pm to NC_Tigah
The problem is there is no way to Guarantee anything can be off loaded. This is a storage problem. Every refiner in the world would gladly buy and store $10 bbl oil. They can’t store it.
This is a demand and storage problem. It is real.
This is a demand and storage problem. It is real.
Posted on 4/20/20 at 2:54 pm to Zach
quote:
The left said we were gonna run out of oil by 2000. I guess they were wrong.
we'll never run out of oil. it's a natural resource...not created by dead dinosaurs
Posted on 4/20/20 at 2:58 pm to cajunandy
quote:
if there is a God -- George Soros
Or Bill Ackman.
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