Oil at sub $15 pb

[Motorsport3]

And gas station price is still well over £1 /lt which is taxes that appear to be fixed.
Also the difference between regular and super is also well over 10-12p /lt, shouldn't that be compressed too?

Of course any drop is good for our Italian V8. Pity that we can't use them.

 

[allandwf]

About 80% of the price is made up of taxes, so any change relating to cost will just be small. Its been sub 15 before, will recover.

 

[RobinL]

Also a while back the Gvnmt moved from %fuel duty to a fixed rate duty so don't expect fuel prices to fall much further. Compounding the issue we also have a high fixed refinery cost. Whilst fuel use may be low the cost of refinery can't get much lower. Diesel is already close to being negative for refiners!

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[lozcb]

Also a while back the Gvnmt moved from %fuel duty to a fixed rate duty so don't expect fuel prices to fall much further. Compounding the issue we also have a high fixed refinery cost. Whilst fuel use may be low the cost of refinery can't get much lower. Diesel is already close to being negative for refiners!

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Just maybe now the government will be hurting through lack of petroleum revenues ,it's time to do away with vehicle road tax and put it all securely on petrol and diesel , much fairer system for all

 

[midlifecrisis]

Just maybe now the government will be hurting through lack of petroleum revenues ,it's time to do away with vehicle road tax and put it all securely on petrol and diesel , much fairer system for all

Agreed, the more your use the car, the more you would pay (which is what insurers want you to do), second to this, the more 'environmentally damaging' your car is , the more you would pay, which the present system of taxation is based on.

Anyway why does the Gubberment (or the DVLA) insist on you paying more by direct debit on a monthly basis that the year in a lump sum. Yet the TV license is the same, whether you pay monthly or annually (in fact they insist you pay monthly !)

 

[lozcb]

Agreed, the more your use the car, the more you would pay (which is what insurers want you to do), second to this, the more 'environmentally damaging' your car is , the more you would pay, which the present system of taxation is based on.

Anyway why does the Gubberment (or the DVLA) insist on you paying more by direct debit on a monthly basis that the year in a lump sum. Yet the TV license is the same, whether you pay monthly or annually (in fact they insist you pay monthly !)

Because the left hand doesnt know what the right is doing .....that's why any dinkum knows the revenue depts don't have internal phone systems that would be too easy

 

[whereskeith]

Some canadian oil is now negative priced...

 

[allandwf]

Some canadian oil is now negative priced...

As some did last time. Electricity does the same when there is over supply.

 

[rivarama]

I never thought I’d see this in my lifetime... negative prices in spot oil... the premium to “not take delivery” is apparently $35 per baril !! Insane !

 

[Lozzer]

I never thought I’d see this in my lifetime... negative prices in spot oil... the premium to “not take delivery” is apparently $35 per baril !! Insane !

Just read that lol , traders being paid $40 to buy a barrel of oil in the US.

Coronavirus: US oil price plunges below zero for first time in history as pandemic hits demand

The plunge into negative territory saw the bizarre situation where traders were being paid more than $40 to buy a barrel.

news.sky.com

 

[Contigo]

Negative now. Long opened only up from here.

 

[allandwf]

It's a bit of a blanket statement when there are multiple Oil type benchmarks, usual media scare mongering and hype. Some will have gone negative, some are not allowed in the US pipeline system so need storage and,or, delivery by other means. Brent Crude is the benchmark here, it has a long way to go before negative.

 

[RobinL]

Negative now. Long opened only up from here.

So a name change to Contango? Weird pricing just now for sure. Likely US Stock Market crude price will go sub $15 for a while?

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[midlifecrisis]

I'll take a few barrels of oil to store at $40 a pop. Just push the cars on the road. And when normality returns sell for $40+... Is that how it works?

 

[RobinL]

It's a bit of a blanket statement when there are multiple Oil type benchmarks, usual media scare mongering and hype. Some will have gone negative, some are not allowed in the US pipeline system so need storage and,or, delivery by other means. Brent Crude is the benchmark here, it has a long way to go before negative.

Our specific UK worry is that unlike shale which can be turned off then on relatively quickly our North Sea Oil is slow to shut in and not 100% guaranteed to start back up again. Way more difficult technically. We guess is around $18 for Brent in June....

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[allandwf]

Our specific UK worry is that unlike shale which can be turned off then on relatively quickly our North Sea Oil is slow to shut in and not 100% guaranteed to start back up again. Way more difficult technically. We guess is around $18 for Brent in June....

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I've worked offshore since 1983, this will be the 4th downturn I have seen. Still viable at $18. Sure some production may be shut in, and projects put on hold, but it will come back again.

 

[rockits]

Negative now. Long opened only up from here.

Is it possible to open a long position?

 

[RobinL]

I've worked offshore since 1983, this will be the 4th downturn I have seen. Still viable at $18. Sure some production may be shut in, and projects put on hold, but it will come back again.

I have a feeling this one is different. Over supply, hugely reduced demand and NSea break even is around $25 for the most efficient. The oil companies have squeezed all the slack out if procurement. Additionally long term investment is eyeing all the carbon neutral promises for 2035 and negative publicity on oil investments. Rather than a bounce back this will be a slow grind to a low but sustainable number. My guess is bottom at $18 and not higher than $25 by end of year. NSea contracts already cancelled... Bit of a gloomy outlook for a while. Doubt I'll be renewing my offshore survival this year. Would have been my 10th!

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[whereskeith]

Is it possible to open a long position?

May wti expires tomorrow, june trading 21 dollars .... I expect June to follow May down as it has 500k open interest.

 

[whereskeith]

This is case of funds etc buying oil to store for a few months and suddenly finding out there isn’t any tankers to store it on and having to bail before contract roll and having to take delivery.