Crude hit a low of $6 a short while ago and is now 50% higher from there — trading at $9. This is the June contract. The May contract went to NEGATIVE $37 yesterday, all the while markets remain very quiet and gingerly calm.
XOM is only down 1.5%.
If this shocks you it’s because it should.
High yield is barely down too — because the Fed is buying the debt. My question to them is, who will pay the interest on the debt, now that crude is worthless? How can they justify buying the debt of oil companies with the commodity in single digits? It’s going to be fun watching this play out. All I know is markets are not going down the way they should — which means something is being rigged. Who the fuck know, at this point?
Perhaps oil bottomed and now trades to $20 and we all fuck each other happily ever after. One thing is for certain, anything can happen now.
GET YOUR iBANKCOIN COLLAPSE Ts NOW!
Mizhuo says oil can go to NEGATIVE $100.
Sankey–Mizuho’s oil and gas analyst–was among the first to warn us last month that crude could go negative. (In case you missed it, oil settled at roughly -$37 a barrel yesterday. Full headlines below.) Now, unlike Goldman’s Jeff Currie, who said he thinks the oil market could transition into deficit (which is bullish for oil) as soon as June, Sankey says the oil market will get even worse next month. “Will we hit -$100 a barrel next month? Quite possibly,” he warns. “If you had a stinking barrel of oil in your back yard, would you pay someone $100 to take it away? Yes, and you would probably be relieved you were not charged $300. That is the situation we are in.”
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How do you go from $6 to $20 in a day? Look at that gap!
Did you hand pick the models yourself?
Covered with ticks for over a decade, the dog’s in trouble. But the ticks can’t help themselves.
Get ready to close on the lows.
Lots of money to be made fading your calls. Can you start blogging again?
You were saying?
Well off the lows. Wrong as usual
lol you two. Who would win in an actual fight, lets discuss….
We closed at the lows of the day. Champ.
USO was up 20% from the lows. This was a post about oil, no?
Or you just get to pick the market you were referring to after the fact I guess. Makes it a lot easier to predict.
USO is a fund, and when someone says “we close on the lows” they’re never talking about a single fund. Particularly not one that was down 25%.
If I didn’t want the barrel of oil in my backyard I would just throw a match at it.
End of problem.
to my recollection crude prices are not a leading indicator, more of a now indicator. Whereas most financial data lags by months. seek out liquidity is what we are being told. too late for real estate already given the particular nature of this crisis.
Serious Question
If an an oil well can’t be shut off easily, is not connected to a pipeline or empty storage containers will they start digging pits with liners in them and pump the oil there?
Open pit oil or just pump the stuff onto the ground?
It can all be shut down. However, whether they can restart economically is another question, water flooding is an issue affecting some. No spills need occur to my knowledge.
Do not underestimate the power of the press
As Mark Twain once said,(at least they think he said it) “If you don’t read the newspaper, you are uninformed. If you do read the newspaper, you are misinformed.”
The man was ahead of his time.