crude oil at lowest price since August

bb.... you keep forgetting ....

He's got "sources

A "College" education aka "Collage Education"!

As for his "oil" marketing expertise and headline robbing ...

... actually the data he tossed out was a "futures" price for FUTURE delivery if a buyer in the future had the capacity to store the purchased barrels ON THE FUTURE DATE. To be precise WTFdoIknow couldn't buy a barrell for less than market on April 20, 2020, if his Sports Illustrated life depended on it.
Originally Posted by LexusLover

I personally could not buy a barrel of oil but I have a bit of stock in Enterprise Products (EPD)...their 2nd quarters 2020 results improved significantly over 2019 in this segment of their market because they have significant storage capacity. So in reality, I profited from this one time distortion. This from their 2nd quarter press release:


Gross operating margin from crude oil marketing activities for the second quarter of 2020 increased $219 million to $184 million compared to the second quarter of last year. This performance was primarily attributable to higher margins from using uncontracted storage capacity for contango opportunities and regional price spreads. This business also benefitted from a $37 million improvement in non-cash, mark-to-market hedging activities

You're the dumb ass...Your level of comprehension is below moron level!!


The “real” price of oil wasn’t actually negative. It was a panic to not settle physically. In fact, if energy companies hedge, they were likely the ones selling futures contracts before this point… So this caused oil to turn negative?
Why did oil prices go negative? - Diligent Dollar

https://diligent-dollar.com/2020/04/...s-go-negative/ Originally Posted by bb1961

You forget to add this part from you own article:


So this caused oil to turn negative? Yes. As traders looked at their May contracts, they realized they couldn’t take physical delivery without paying huge prices. Also, panic probably settled in.


This was also in your article:

When the June oil futures contract price is higher than May, that means the market is in contango

Notice the word contango it is also in the explanation for 2nd quarter profits from that sector in Enterprise Products financial statement. I hate to be smug and say I told you so but not only did I tell you so but I made a buck or two off contango.

Actually the price of the physical commodity, not just the futures contract, went negative on April 20, 2020. If you had storage capacity at tank farms in the Permian Basin you could "buy" the crude and then take delivery. But instead of paying the seller, the seller would have had to pay you around $30 per barrel. I know an oil operator who tried to get hold of some tanker trucks then and do exactly that.

The price went negative on the day before expiration of the May, 2020 commodities contract. If you had storage capacity in Cushing, Oklahoma then, the delivery point for the contracts, you likewise could have bought contracts and taken delivery of the crude, and the seller would have had to pay you money.

The May contract expired on April 21, at +10.01/barrel. Traders who bought on April 20th and sold on the 21st made a bundle. On the other hand, there were some traders who were on the other side of the trade who lost a lot of money, as well as their brokers, who had not collected sufficient margin funds from the traders because the brokers never in their wildest dreams expected the price would go negative. Originally Posted by Tiny

You're talking to hard heads. They still think Trump won

This is like that 2 cents we save per gallon... nothing. An illusion held only by the Biden crew.

This is like that 2 cents we save per gallon... nothing. An illusion held only by the Biden crew. Originally Posted by the_real_Barleycorn

Biden is no more responsible for the rise in gas prices that Trump was for the sudden drop....

Anyone that thinks differently is just spouting partisan politics.

This is like that 2 cents we save per gallon... nothing. An illusion held only by the Biden crew. Originally Posted by the_real_Barleycorn

To some a straw is a life raft.

WTFDoesHeKnow is riding the BittenTitanic to the bottom!

Then he gets Kumola .... whose a ....



... the only boat is passing him by!

To some a straw is a life raft.

WTFDoesHeKnow is riding the BittenTitanic to the bottom!

Then he gets Kumola .... whose a ....



... the only boat is passing him by! Originally Posted by LexusLover

Oh Lord....LexusLover is taking over from oeb with his continually parroting childish nick names about people that wouldn't give him the time of day.

Hey LexusLover...how did that RTM about me supposedly outing you work out counselor? Were you really voted shittest lawyer in Harris County?

So immature for a 75 year plus old man to make up childish names about politicians on a hooker board. How proud wife must be.

Back on topic contango is you new word of the day. I made money off it when oil prices turned negative because the company I've invested in did have excess storage

Opps

https://diligent-dollar.com/2020/04/...s-go-negative/ Originally Posted by bb1961

This from your own link:

When the June oil futures contract price is higher than May, that means the market is in contango. .

This from EPD's 2nd quarter results;


Gross operating margin from crude oil marketing activities for the second quarter of 2020 increased $219 million to $184 million compared to the second quarter of last year. This performance was primarily attributable to higher margins from using uncontracted storage capacity for contango opportunities and regional price spreads. This business also benefitted from a $37 million improvement in non-cash, mark-to-market hedging activities

It sucks I lost 15k

... So what you're saying is - that when America (under Trump)
was pumping its own oil - pipelines flowing - to be energy
independent - that DID NOT cause oil prices to drop here?

And when America (under Biden) surely decided to STOP drillings
and close the pipelines - THAT didn't cause prices to rise?

Just wanna make sure I understand yer rather baffling premice.

#### Salty

Does oil pumped by the US only go to the US or does it go into the world market?
Do refineries process only their own oil or do they purchase oil on the world market to refine?

Does oil pumped by the US only go to the US or does it go into the world market?
Do refineries process only their own oil or do they purchase oil on the world market to refine? Originally Posted by NoirMan

Did you try to look it up before you asked. You are in New Orleans?

During Trump's years after he was in for awhile, the U.S. exporting oil and liquid gas (primarily).

In 2019, the United States exported about 8.47 MMb/d of petroleum to about 190 countries and 4 U.S. territories. Crude oil exports of about 2.98 MMb/d accounted for 35% of total U.S. gross petroleum exports in 2019. The resulting total net petroleum imports (imports minus exports) were about 0.67 MMb/d in 2019.

www.eia.gov/tools/faqs/faq.php?id=727&t=6

People around here like "copy and pasting" so I provided it!

Others read about it in Sports Illustrated with no citations.



[IMG]https://images-na.ssl-images-amazon....40_FMwebp_.jpg[/IMG]

And he voted for the numbnuts who is now begging for the Saudis to produce more oil!

bb.... you keep forgetting ....

He's got "sources"!



A "College" educati

As for his "oil" marketing expertise and headline robbing ...

... actually the data he tossed out was a "futures" price for FUTURE delivery if a buyer in the future had the capacity to store the purchased barrels ON THE FUTURE DATE. To be precise WTFdoIknow couldn't buy a barrell for less than market on April 20, 2020, if his Sports Illustrated life depended. Originally Posted by LexusLover

I personally could not buy a barrel of oil but I have a bit of stock in Enterprise Products (EPD)...their 2nd quarters 2020 results improved significantly over 2019 in this segment of their market because they have significant storage capacity. So in reality, I profited from this one time distortion. This from their 2nd quarter press release:


Gross operating margin from crude oil marketing activities for the second quarter of 2020 increased $219 million to $184 million compared to the second quarter of last year. This performance was primarily attributable to higher margins from using uncontracted storage capacity for contango opportunities and regional price spreads. This business also benefitted from a $37 million improvement in non-cash, mark-to-market hedging activities Originally Posted by WTF

Tiny and lustylad should take note.

This company has already invested in plants and export NGL terminals.

Past few petrol pit stops i've made, noticed price of gas going down.

Where are the memes at? I know there are people here who state the potus sets the price of such. So, let me pull out their old slogans.