Even European oil way down, -13.5%, so it’s clear they don’t see demand picking up again soon.
Even European oil way down, -13.5%, so it’s clear they don’t see demand picking up again soon.
Is now a good time to buy some sort of stocks related to the oil industry?
Ha ha, I thought oil couldn’t go any lower last week! Now they’re paying people to take it. Fascinating stuff.
Just bought some stock with some extra money. Not a lo,t but enough where if I loss it wouldn't affect me at all.
Europe oil down 25%!
student of economics wrote:
True economic growth comes from exporting goods farm produce and natural resources. Manufacturing in U.S. is weak. U.S. should have been all in on free trade with Mexico. Many in U.S. were so worried about Mexico and Mexican taking jobs. China has the jobs. That d a m n wall is foolish! The backbone of U.S. economy is Applebees and Olive Garden. How pathetic.
I am not clear what your argument is. The US is the world's #1 exporter of agricultural goods (more than double the amount of Germany, which is the second largest). Accomodations and food services make up 2.7% of the economy. So yeah, great input, except it is a complete fabrication.
Anecdotal evidence: filled up my car about 6 weeks ago, tank is still 2/3 full.
Obviously, I am not the only one.
joedirt wrote:
student of economics wrote:
True economic growth comes from exporting goods farm produce and natural resources. Manufacturing in U.S. is weak. U.S. should have been all in on free trade with Mexico. Many in U.S. were so worried about Mexico and Mexican taking jobs. China has the jobs. That d a m n wall is foolish! The backbone of U.S. economy is Applebees and Olive Garden. How pathetic.
I am not clear what your argument is. The US is the world's #1 exporter of agricultural goods (more than double the amount of Germany, which is the second largest). Accomodations and food services make up 2.7% of the economy. So yeah, great input, except it is a complete fabrication.
Not great to state U.S. is number one ag exporter. You do admit manufacturing is weak in U.S. I know corporations in U.S. do not want to pay front line workers $15 to $30 per hour. It would make sense to have western hemisphere as a true free trade zone. If U.S. based corporations set up sites in Latin America, paid workers $5 to $15 per hour, that money would be a benefit to the entire hemisphere. Racist Republicans do not want U.S. corporations helping Latin America. Democrat unions do not want U.S. helping Latin America with jobs. So we buy from east Asian corporations which is not efficient for shipping costs. I did not fabricate anything. U.S. counts on U.S. citizens and foreigners too darn much to eat & drink at dive bars and restaurants.
buybuybuysellsellsell wrote:
Is now a good time to buy some sort of stocks related to the oil industry?
Only if and when people get back to flying. A 747 burns a gallon of fuel every second. You could drive every gas guzzler in the country, but without those international flights, oil demand will slump. With airlines flying at about 5% of their capacity, it is going to be a while. The number one thing airlines need to do is ship everyone that flies an N95 mask and safety glasses (or they need to develop and contract manufacture their own in-flight mask that will protect their staff and their customers). That small cost will payback in restored revenue.
And the effect of cheap oil starts hitting green energy companies.
https://www.oedigital.com/news/477768-danish-offshore-wind-turbine-builder-lays-off-400-workers
joedirt wrote:
buybuybuysellsellsell wrote:
Is now a good time to buy some sort of stocks related to the oil industry?
Only if and when people get back to flying. A 747 burns a gallon of fuel every second. You could drive every gas guzzler in the country, but without those international flights, oil demand will slump. With airlines flying at about 5% of their capacity, it is going to be a while. The number one thing airlines need to do is ship everyone that flies an N95 mask and safety glasses (or they need to develop and contract manufacture their own in-flight mask that will protect their staff and their customers). That small cost will payback in restored revenue.
yes and no. Gasoline and diesel each represent about 25% of global energy demand, while Jet fuel is only about 7%. Diesel demand has probably slipped the least, then gasoline, and then jet fuel the most in terms of % of what demand was. The biggest volume impact is probably on gasoline. But, gasoline demand will come back when people start commuting and vacationing. Jet fuel from airline traffic probably does have the highest hurdle, and the idea of the airlines providing masks is not bad.
So people have to both start driving and flying.
https://www.eia.gov/international/data/world/petroleum-and-other-liquids/annual-refined-petroleum-products-consumption?pd=5&p=0000001001vg0000000000000000000000000000000000g&u=0&f=A&v=mapbubble&a=-&i=none&vo=value&&t=C&g=00000000000000000000000000000000000000000000000001&l=249-ruvvvvvfvtvnvv1vrvvvvfvvvvvvfvvvou20evvvvvvvvvvvvvvs&s=94694400000&e=1546300800000Let's see, each contract is for 1,000 barrels. I will take my $37630 to rent a big warehouse to hold the barrels. They're going to give them to me in actual barrels, right? If not, I'm in it. So, I rent a bunch of trucks to take my 1,000 barrels to the warehouse. But I have a lot of extra space, so I buy another 10,000 barrels. Then I need another couple warehouses, and so on. No, I'm probably never going to be a billionaire this way. So, instead, I just order 100,000 contracts (100 million barrels) and I buy land in Oklahoma nearby and I dig a hole and pour it back into the ground. This would be the environmental thing to do. Hope there's no ground water to contaminate or federal laws to be broken that way. I'm thinking that ultimately only big players with economies of scale can ever profit in this business.
Co-Flounder wrote:
And the effect of cheap oil starts hitting green energy companies.
Your obsession with renewables is a bit strange in a thread talking about fossil fuel traders literally paying people to take their product.
But since you brought it up again and again and again:
https://www.eia.gov/todayinenergy/detail.php?id=42955You’ll only confuse the fossils, and their fuel, with a bunch of facts.
not directly related to the futures contracts, but an indication of what is going on.
https://finance.yahoo.com/news/oil-tankers-surrounding-california-nowhere-213103837.html
The topic is price of energy. Since I work in energy storage, control and power quality, and my customers are solar and wind farms the price of oil directly affects the available investment for green energy. If oil stays cheap then green energy development projects go home devastated.
You mean unless they’re equally subsidized by the government?
That was happening long before our time, junior.
jesseriley wrote:
You mean unless they’re equally subsidized by the government?
That was happening long before our time, junior.
No actually unless the ongoing subsidies for green production are increased. The price for the alternative (oil) is assumed to be lower, so the cost to supply the green must also so down.
Exactly, all political. They can change the subsidies whenever they want. European countries always claim their fossil fuel is expensive because it’s not subsidized.
jesseriley wrote:
Exactly, all political. They can change the subsidies whenever they want. European countries always claim their fossil fuel is expensive because it’s not subsidized.
actually it is very heavily taxed