YES OIL IS CRASHING !!!!!!!!!!

IT FINALLY HAPPENED !!!


YES!!!!!!!!!!!!!!!!!!!!!!!!!!!


Crude Oil WTI (NYM $/bbl) Front Month

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Last Updated: Apr 20, 2020 at 12:51 p.m. EDT
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5.19
-13.08 -71.59%

Down some more !!!


4.98
-13.29 -72.74%

Let's keep shut down another month and really screw things up.

This makes you happy?

I don't know why anyone would be giddy while watching their own house burn down.

Schadenfreude

YES !!!!!!!!!!!!!!!!!

Why?

Pretty soon, I will be able to get gas for $0.19 CENTS A GALLON with the TOPS Bonus Card

Who will produce it at that price ?

Wow, you think real deep or are you just trolling? Canvasback.

Clearly you are not thinking clearly.....

Lol. Dirt that's why I said "own". I guess the giddy people mistakenly thought they were on the next street over watching their least favorite neighbor's house burn down.

Hobby drillers.

Sheesh......

Or the guy buying the gas is working for a dollar an hour.

I'm not sure there is any other single possible market collapse with the potential to destabilize every aspect of our modern global economy and international relations. Talk about reshuffling the deck. There's some powerful folks that aren't among our friends who might be feeling pretty desperate before too long.

But big banks and big auto are too big to fail. SMDH

You mean..Warren Buffet might be in line at my house for some bread ?

This is beyond anything the US government has the capacity to fix. We're just another player.

Ha! Along with the Saudi's, Iranians and Russia. They probably won't want to wait in line tho.

The price of most everything is tied to the price of fuel. The more fuel costs, the more everything costs. The price of everything has gotten too high. Labor costs, construction costs, raw material costs, manufacturing costs have all gone up. We need an economy where our Dollar can buy what it used to be able to buy. I look at the grocery cart when I am at the grocery store , and the bill is almost $100.00 The cart is not even half full !!! Years ago, 1950 to be EXACT !! the grocery bill was $15.00 for the whole MONTH!! Yes, $15 DOLLARS!! They had Milk from the Farm and a big Garden for their vegetables.

That is with the discount for the bonus card . $0.10 off for every 100 points with the card. When they have the double and triple bonus points, it really adds up !

Yup, I bet Big new pick ups with every option will be $10,000 next week......

I'm talking about the production companies. With oil this low they are losing more money with every pint they produce. They will shut in production soon ! Then you won't be able to buy it at any price.

Crude Oil WTI (NYM $/bbl) Front Month
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CL.1
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Open
Last Updated: Apr 20, 2020 1:30 p.m. EDT
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$
2.44
-15.83 -86.64%

Anybody that thinks oil at $ 1/barrel is a good thing needs to go back to school and take a basic macroeconomics class, not home economics.

I am sure all the bankers will be glad to accept a few dozen eggs when you go to pay your mortgage , eh Canvas!

Oil has not been this cheap, since 1948 !!!!!!!!!!!!!!!!!!!!

Exactly. And all the transportation of products wont be running on air...take a breath....canvas

I agree, I been saying that the real bad stuff had not started yet.....sorta getting going now but really not much above idle....wait till they step on the throttle.

Strategically, lots of the stimuli $ should be diverted to the US oil industry....or we will soon be back at the mercy of the folks who did 9/11. The russians and them started this at just the right time.....heck of a coincidence.

This is not good at all. We cannot produce it at that price which means everyone working in our oil industry has the possibility of being laid off or outright losing their jobs.

1.69
-16.58 -90.75%

Sharon:

This will probably be the only time in my life, that will be able to say that I filled up the Garden tractor for $19 Cents a gallon; with the bonus card savings !! Got to have a little fun while it lasts !! The prices on the Reservation are going to be even cheaper ..

Its a bad sign for sure . I think it hurts fewer people than $140 oil i hate to imagine what things would be like if gas and diesel was over $4 a gallon while we were dealing with covid 19

Heck, I’m sure they lined their pockets when gas was over $4 a gallon years ago. If not then that’s their own fault. I’m supposed to save for my future, they should do the same.

LOL you guys are killing me. Tell the WHOLE story . First Big oil makes their money from the end product. If they are buying at a low cost they can sell at lower prices.If oil fields shut down big oil will just buy their own wells. Heck large percent is owned by big oil now. It won't kill them to only make a couple 100 mil in a quarter instead of 4-5 BILLION EVERY quarter !!!!!!!!!!! PROFIT
Saudi's and Russia can't eat the crap. The US should have treated them like they do the farmers say ok we pay x number for a barrel. The little oil / wildcaters will go under. BUt how many trucking co , handy man co's with fleets of vehicles went under when they were getting 150 bucks plus a barrel. with gas 4.00 plus !!!!!!!!!!!!

If your logic is the best way HOW come when oil was 175 bucks a barrel and gas was 4.00 the country was in the worst shape I have lived to see it !!!

0.77
-17.50 -95.79%

Ok, This is bad.....


Delayed quote
$
0.06
-18.21 -99.67%

Hey I got a novel ideal that will save the stock market and jobs
TAKE IT OFF THE STOCK MARKET !!! Stop trading on it . Those are only numbers not what it is actually selling for ..................

you should go braid youre nose hair again,i think ya got it a little tight the first time.

Tax on a gallon of gas in Cali. is still .80 per gallon!

That is reason number 754,921 to avoid that state.

A lot of irony here. Short term this kills everybody except the consumer but the consumer is helping to cause this because with worldwide stay at home shutdowns there is no demand. Where you going to go with your cheap gas? Long term, the major beneficiaries are the guys some of you think are getting their comeuppance, Big Oil. Major integrated companies will buy the proven reserves of smaller producers as they go belly up without having to deal with the costs of exploration. Those reserves will sit in the ground until needed. The integrated companies can increase margins at the distribution level and nobody will even question it at these lower prices. When demand picks up and Big Oil controls supply and distribution some of you will regret getting what you wished for.

This scenario is what many investors are thinking as shown by current stock prices. An example is ExxonMobil . As I write this the price of crude is $ 0.05/barrel but XOM is only down 4%. Other major integrated companies are similar.

I know, I know.....years ago during a fuel drop I filled up my truck tank from almost empty for $ 9.00 . Was happy about that part, without knowing the worldwide repercussions ...

You are being misled by those numbers Bob. Like I said, you are looking at the price that May futures contracts are trading for. NOT the actual spot price of oil.

AOC is loving it. The destruction of the oil industry

It's all goin to pot....whether we like it or not...

you should get on Hobbie's rap thread.

Well said!

Chris

Old Dirt is not going to get much of a "Permanent Fund" welfare check
from the State of Alaska from Oil dividends this year.

He might have to ship some low dollar marten and hatter beaver to
to FHA to make up the shortfall.

w

Fox is now reporting that futures went at one point went to $13bbl negative .


Stocks slide as oil crashes below zero | Fox Business
https://www.foxbusiness.com/markets/us-stocks-april-20-2020?cmpid=FNC_app

That means they'll paying us to take it! I hope they pump it for us too.

I think oil closed somewhere near -40 per barrel.

I'm not meaning to offend anyone here, but when I read the arguments of global repercussions and this is burning down the economy, it is complete ignorance of history.

Oil is a rigged market. Gas was around 1.87 a gallon in 2008 under George W. Bush at 40 dollars a barrel. Odd how we never saw those low fuel prices when crude was 40 dollars a barrel.

President Ronald Reagan, dropped oil prices, by dealing with Saudi Arabia and buying Prime Minister Margaret Thatcher's North Sea crude. This caused DEFLATION which everyone said the sky was falling, and what it created was low oil prices, dropped prices for food, supplies etc.. which caused a 30 year economic expansion, which was only killed by Read My Lips HW Bush and Bill Clinton raising taxes.
I doubt anyone here knows the oil fields, that in Saudi Arabia it basically flows out of the ground, so it is cheap to produce, and no prices were cut when it was 100 dollars a barrel. American shale is different, but the technologies advanced greatly in the boom, in cutting costs for production. No one here has mentioned that natural gas is being used in electric power plants and that coal which American has a plentiful supply was bankrupted deliberately by Obama. This in turn spiked propane and natural gas prices gouging consumers, just as electricity by Obama was mandated to be 40% green and why our rates all tripled.

I'm asking rhetorical questions as probably no one has the answers here, but America has more oil that shale. Alaska has 4 confirmed fields of crude oil, which is sweet crude, meaning it refines itself. There is more oil in Alaska than the world combined, and yet Americans were buying high sulfur Venezuelan crude which is hard to refine, while our crude was going to Japan.
Each one of us has been gouged for years, because you believe the propaganda as now. In the 1980's Williston in North Dakota had an oil boom, prices went down and they capped the wells, as Americans suffered and were gouged in record energy inflation. This oil is not going anywhere that is in the ground, it will be pumped and should still be pumped for low energy prices for America, as that means terrorists do not have money in Muslim nations to make war and Russia does not have revenues to point nuclear missiles at Americans.

The President has reached an agreement in OPEC PLUS, with Russia and Saudi Arabia to cut production, which will provide the excuse to gouge Americans again. The fact is, like under Reagan, the United States should use oil as a weapon, in an export price which punishes the big consumer in China. There is a war coming with China and if President Trump's alliance does not take Russia out of the picture, China will move to take the Alaskan oil fields as they do not have energy. China will move down the Khyber and take the Mideast fields too, just as Japan moved for oil in the start of world war.

The real problem in this is the American farmer. Ethanol production is at the lowest level. The USDA has not implemented a sound agricultural policy as farmers are still planting soybeans, which is a Chinese market, and that market is gone. Ethanol cut 1/3rd of imports in money funding Muslim terrorists and it stopped Russia from building doomsday bunkers the size of cities, for war with the United States. Yes that is what Russia did with the last oil price surge, they prepared for war with America.
The biofuel market to America is as important as the shale fuel market as this is the complete energy picture.

For a reality check in real energy policy, the United States should be burning coal in 100 new power plants, stop this green energy fraud, and drop electric bills to 50 dollars a month. This will drop natural gas prices for consumers, and project with the drop in gas prices at the pump, a deflation which will cause another Reagan expansion. For those who forgot what the situation was before Coronavirus, The market as it is rigged, was promised to drop to under 2.25 a gallon at the pumps for most of last winter. it barely touched it and by February the prices were driving upward again on fake stories of why the price was rising again. If Coronavirus has not appeared, you would be paying 2.50 a gallon now on the same 40 dollar crude, which under Bush41 you were paying 1.87 at the pumps.

The shale speculators, like the railroad speculators of the 1880's. took borrowed money, in this case it was Citibank, which is owned by Saudi Arabia, meaning that financial giant drove the high priced speculation in America, in which Americans over reached and then over produced, and this market has been teetering for years. Saudi Arabia then turned on an oil war with Russia, and both caused this, with the target of shutting down American shale, or more to the point, of causing the wells to be placed into receivership so Citibank, or Saudi Arabia would own American oil and gas, which in fact it has with other foreign interests, like the pork industry in owned by China and is spreading the pandemic.

The short of this is, America has a 200 year supply of gas, oil and more of coal. America has thorium which Richard Nixon shut down in clean nuclear energy, to power America and the world for a 1000 years. If low oil prices are "bad" for the world, then it is because those behind this want it bad for the world and an excuse to instigate more of the same financial rapine and wars which is always behind this.

Chris

From someone who makes a living in the energy industry and with many many friends in the oil industry, the low price is doing terrible things to anyone who works in the energy sector. Thousands of people have lost there jobs already and that affects 10's of thousands of people. Its just not good, the low prices are really cool but its damaging a lot of family's right now, and if it doesn't start picking up things are going to get real bad for quite a few people.

I agree with Hobbs
We only have about 30% of our people working at the facility I work at.
The rest of us are on unpaid furlough. Most of our customers have cancelled any orders we had.
This is not good for anyone in our state

I think what is happening here today, even tho prices are low. This Is a spread trade and some speculators who were long the paper market had to either sell the paper market or take actual delivery of their paper long position. The May contract is in delivery and that is the one that is getting crushed more than the others.

So you notice June is still floating around the 20 dollar mark. Someone lost a pile of money for certain. I just don't know how much of it is the oil companies. More likely somebodies 401k took a hit if their trading house got long oil and was fooling enough to hold it till first notice day. 20 dollar oil is still pretty darn cheap and I would assume cost more than that to produce it.

Star Flakes: You do know that natgas is so cheap now that they are flaring it at the wellhead ?

If Saudi Arabia owns Citigroup, you might want to tell Vanguard, Fidelity, State Street Advisors, Blackrock Advisors. They think they are the major shareholders.

It is a public company. Owned by public citizens.

Just heard on the radio ... .01 cent a barrel....

LOL.

You mean George Bush?

They are limiting how much gas I can buy with the discount !


"Discount valid for one vehicle fill up in one transaction only (max. of 25 gallons of gasoline per transaction"

Canvasback2, What do you do for a living? I only ask because I make my living and support my wife and two young boys off the oilfield. Glad to see you excited to save a few bucks at the pump while watching my lively hood go in the dump.

about half my little town here.

Remember folks, this is the same guy that got all giddy when he bought up all the N95 masks at a store.

When even BOCO won't ship to FHA, you know it is not an option. Well...…, for business trapper.


P.S. Dividend is tied to stock market, not price of oil.

i don't do it for the money.

So how low did it go?
Does someone really no?
I ain't buying .01

Looks like the petrodollar is in trouble.
Guess all that printing is finally catching up.

I remember the days when I could buy a gallon of gas for 19 cents a gallon. I think It was 1968.

-37.00 i believe it ended at.wait til tomorrow.

Sounds like me trapping muskrats.

Are people buying crude oil stocks like crazy now? Is it possible to buy crude oil stocks with a negative?
Nearly -$38.00 barrel is not good

1956 .05 gallon reg gas......... .03 1\2 cents diesel..

Where you been for the last month ?
THINGS ARE TOUGH all over unless you sit at home drawing retirement . Then low gas is great !!! My Z-9 nitro holds 64 gallons got 35 gal for less than 50 bucks 2 days ago !!!!!!

EXACTLY Paper numbers bull crap no one is going to pay someone 37. bucks to take a barrel of oil. If so Big oil will be rich just order 1 million barrels. BOOOM just made 37 million dollars !!!!!!!!!!!!!

Now does anyone else need a lesson on how the commodities market becomes a complete cluster knot every time the guberment shows up to help?

Dang !! I would love to have piece of that bread Nessmuck. I can almost smell it , plus the cookies.

^^^^^^^^^^^ and to think I took up baking 3 weeks ago.....thanks !

You do realize that with inflation, prices are relatively similar? $15 in 1950 is about $160 now. Also, with the amount of money the feds are injecting into the economy to try to keep it afloat it's going to inflate the dollar some more, further devaluing it.

Also, this price drop is only for the contract for the month of May, not for the foreseeable future. If you want the dollar to regain its value then we need to be taking money out of circulation, not printing new money at a record pace.

The Saudis will soon have to tie their oil to a different currency.

Yep its like being 16 again. Dirt cheap gas and i am grounded and got nowhere to go

At least someone is paying attention.


People are loosing their jobs here every day because of the low oil prices being celebrating in this post.

That area of the world has been talking about going off the petrodollar for years.

Not going to be good for any real commodity in this market as oil has been a driver for decades. There will be some real major adjustments if the dollar is not the oil price currency as that will impact hugely on the USA's major exports, Ag stuff, defense stuff etc. etc.

Bryce

In a spot that the world is in, food could be the real commodity. LLL

Maybe we should air drop em some of those pigs farmers are having to cull.

Here's the last 10 years of the BDI

Some feel that this index is a good forecast for longer range predictions.

Delivering food to 3 billion low income world citizens with no resources and very limited ways of storing anything that needs freezing, refrigeration etc. which means we would really need to retool our food processing to can meat again instead of keep cool or froze. Which means that much of what we eat here or consume would need to be processed totally different and that will take time.

Bryce

As AOC would say "YOU JUST MAKE IT HAPPEN"!!!!! Wah lah...
Canning meat ain't a bad idea. Maybe the UN would pay US producers to feed the billions of starving who have no way of paying for it.....
I have canned beef and canned turkey...

Not in our lifetimes or our kids' lifetimes.

70% of the countries in the world peg their currencies to the dollar.

More than 60% of all foreign bank reserves are held in dollars.

Over 40% of all debt in the world is denominated in dollars.

As long as individuals, businesses, and governments are seeking relative stability, this relationship won't change.

As much as China would like to replace the dollar, this virus has only served to push up the value of the dollar on world markets because everyone is seeking the safe haven of dollars and dollar denominated assets.

All bets are off if those who believe in Bernie and fellow travelers ever get control of this country. Left wing policies would likely end what stability now exists in the world.

At that point, everything is finished

It will happen sooner than you think-the US dollar is now puff from all the printing of debt backed dollars driving down the dollar value of oil as can be seen by the way oil is going.It used to take 10 beaver pelts to buy a barrel of oil,now it only takes one.

Then explain to me why money is flowing into US treasury instruments from all over the world....which is actually driving UP the value of the dollar....not down. A stronger dollar depresses the price of oil and your beaver in dollar terms.

You don't suppose British people thought the Pound would remain the reserve currency?

You're fooling yourself Ken. The dollar is teetering, how many trillion do you think will be printed in the next 24months?

China rolls out for the world to see the largest collection of physical gold on the planet and declares its new global currency is backed by gold.....you too can have some if you just kneel.

The British economy, after two world wars, was no longer large enough or strong enough to maintain the pound as the reserve currency. They were a debtor nation with a sick economy. They never recovered.


I understand the debt issue Steven. And I'm sure we will print more but the fact is that the world is actually suffering a shortage of physical dollars and that is part of the reason for the dollar's strength. People the world over want dollars in their hands.

As long as US Treasury securities are in demand by individuals and governments all over the world, the dollar will remain the reserve currency. Treasuries are the safest store of money in the world

That isn't going to change as long as the world sees that the US recognizes its responsibility for stable economic and financial markets and outcomes.

I agree with your last statement. As long as there is confidence in the dollar we will be ok. Once confidence is lost it's over. I think we are getting there. Interesting you should say that Britain was a debtor nation before it lost it's reserve status

I was thinking we'd see 10 trillion in new money, we will surpass that. They are lining up to pass another stimulus, this is nuts

In dollar terms-thats the crux of the buiscuit.Dollar terms are no longer any good.Too much printing created puff money.
Be better off with beaver pelts than paper puff money.The real value of the petrodollar is now reflected in the value of oil.

This whole situation......all that has transpired in the last 30 days or so as related to kung flu and global economy is totally unprecedented......Things never seen before happening....not one thing but many things...

Then people come along with the logic that nothing will change...... Its all going to stay with the status quo.

..well, if that's what you think you better look around again and this time be observant.

Everything can change very dramatically within a very short time....and the mote 'firsts' we see the more firsts we will be seeing in the not very distant future.

Oil is cheap because demand has been destroyed and we are figuratively drowning in supply. IMO, it has nothing to do with the strength or weakness of the dollar.

I'm going to print this out for my wife to explain why I need to order a dozen belisle 330s, right now.

Ask the Dairy Farmers about this.

I caught one sound bite on tv, it sounded like the dairyman they was interviewing had a cow to bottle operation with a limited base he was selling to. A bad situation for him and a great sound bite for tv. I'm not down playing the situation but it doesn't hurt to question what is really going on.

Right now there is a 10% over supply of milk over demand worldwide and domestically. With a highly perishable product that needs cold storage and is typically higher priced in the market due to protein quality etch we have an urgent issue in the dairy industry. Right now we have 9.4 million cows in the USA that means that close to a million of those cows are not needed to fill demand and what we don't know is how much longer will this issue last at close to this level, half this level or worse than we have now. Oil wells can be slowed or stopped and started up again. Biological or animal based cut backs are a whole different issue and will have longer term trade offs down the road.

Bryce

Maybe I missed something. Why has milk consumption been significantly reduced due to a disease pandemic?

School lunch programs are closed down and resturants are closed down. And ice cream factories

Oh right, so with kids being at home they're on a steady supply of soda instead.

Different packaging of dairy products for school and restaurant use versus retail. It's not as easy as selling the milk and cheese that was going to restaurants to individuals instead.

Restaurants are closed so there isn't as much of a demand for cheese or milk. The take out orders that some are staying open for are no where near the volume they used before.
Schools are closed so kids aren't drinking milk there. It may have been were some were getting it at. Maybe their parents don't buy milk for them at home.

There was an over supply before but this has been a huge hit.
Let's face facts a lot of people can't cook or just are too lazy to.They're being forced to so they're buying boxed prepared stuff. Where as restaurants would use cheese and milk in a lot of dishes and desserts.

Not good

I haven't read the whole thread so if I sound as a broken record, sorry.

A while back there wasn't any milk around here to be bought. I was told since all the small school lunch size boxes weren't being used there was a shortage of gallon jugs. For a while we couldn't buy milk and then everyone had a limit of one. Now we have milk in every store with no limits.

They look good , better watch it you might get so good you might start a bakery.

Milk is expensive here. Surprised we're not seeing a price reduction to encourage consumption as a strategy to reduce waste.

Yes'sir, You nailed it right there, supply and demand, not dollars.

The person saying different has an anti-USA agenda, proven by his many prior posts.

Don't forget the saudi-russian price war and the saudi's saying they could get by with $8 a barrel oil. That started the drop a few weeks ago. Impeccable timing.....

Be a good time for the U.S. to fill up some old mines an dry wells , and save for a true disaster and not for holding a weight over the market. Bet any speculators will be staying away from the spot month from now on. I had 3 contracts of corn one time that I had bought way out and had forgotten about them and was high on the list and first notice day rolled around and cost me $1500 to retender, And that was in a fairly stable market.

"
The Bank of Canada’s vast experiment in printing money may not end well"

Even with all the QE under he previous admin, the dollar still rose relative to all of the other currencies. Not saying that's a good thing, for us it is right now. Long term we'll see, depends on our economy and military.

The institutions., schools, restaurants etc. don't use a lot of milk as compared to butter, cheese and powder which is used in almost all baking etc. Also the export market is for dry milk powder not milk and as stated the industry can't change over fast enough to process what is needed now with the changed market, which is the same for meat etc. Actually they are doing pretty good when one thinks about the massive change that is needed to get product where it needs to be and in a form that they can utilize. There are other sectors of our society that are lagging way behind in getting things turned around. The big issue for dairy now is that even with processing changed the demand will remain way below typical for months be that domestic or world markets.

Bryce

Just for curiosity sake, can anyone tell me what the current government subsidy is per gallon of milk? Is that price dependent on supply (?), demand(?), or other factors? Just don't know what part that plays in the scheme of the market, if any. I am trying to become better informed, thanks.


Zookeeper

Milk was doing good around here. Haven't read this month's report yet.

I relate it to the tp shortage.

Some were geared up to produce commercial paper and some for residential paper.
One demand is almost non-existing now and the other can't keep up.

My best friend is a dairy vet. I asked him some of these questions yesterday.
Lack of school use, restaurants, cheese manufacturers, and ice cream producers has slowed the need for milk. I asked about powdered milk, he said we have way more in stock now than needed. A few of his farmers are dumping some because none of the mentioned users can take milk in the raw form (straight from the cow) so it doesn't get processed because the bigger end users aren't buying.
Milk subsidy. Explained to me years ago. Started after WW2 by two Jewish investors in NYC. Yup, still going today. My friend's opinion is in the long run the subsidy should be done away with and let milk find it's own price level. More than likely it would even out depending on demand.
So, lack of demand currently has caused milk dumping.
Boco, I suppose milk could be transported and sold to Canada, but the Canadian milk farmers would complain, like they have in the past, because it would likely lower they're profit margin..

Canada is our 2nd largest importer of milk today and two of the 10 largest milk processors in the US are Canadian owned. Canada only has 980,000 dairy cows nationwide and about 37 million people so they import product but still have their supply management system which is more of an Eastern Canada system then western Canada. There is no longer a milk subsidy system as was brought about post W11. That system was abandoned over a decade ago. What we do have now is a subsidized insurance system that farmers can purchase at a sliding fee depending upon how much milk and at what margin they want to cover, very similar to crop insurance. Most dairy farmers did not participate this year and the window to purchase closed right before the crash and one of the arguments is would they reopen the margin program again.
The European Union is the largest competition to the US for exporting worldwide. New Zealand and Australia are the two countries that export the highest percentage of their production and are major players in southeast asia.

Bryce

https://www.cato.org/publications/commentary/madness-american-milk-prices

The article is from 2007 before the price protection programs were dismantled. Also it references the federal milk marketing system which is not directly a subsidy program but a program that offered processors and milk marketing companies opportunities to buy milk in the lower cost production ares WI, MN and transport to milk deficient regions like the southeast. Due to transportation changes, interstates etc. that price difference is much less and with the huge increase in the sales of manufactured dairy, mostly cheese the higher prices were in areas with lots of milk where processors could compete for milk and build cheese plants etc. California and other parts of the west were the last huge dairy areas with no federal order system and those producers have voted over the last two years to create a milk marketing order.

Bryce

Thanks Bryce.

I knew it was old but I was just looking for a starting point on the history prompted by 3togo's post

Speaking of oil, what did it do today?

May jumped back to 10 and June crashed to 12

so June dropped further than they thought but may came back.hmm.

Holding over the oil is like holding over coon with no demand not going to help. Trump is going to be a busy guy trying to figure out how to get things done and make America Great.

gee- think that was part of the plan?????

There is no plan just day to day rambling.

https://www.tradersinsight.news/tra...-whats-next-for-u-s-shale/?=TINewsletter

White,didnt you mention a few days ago that Trumps injection of cash would be a temporary measure at best,until demand rises?-Good call.
Maybe Nafa going belly up was the canary in the coalmine.A harbinger of things to come.

I don't recall Boco. I have probably said way too many things

But here is one more thing.

The oil markets are probably the closest thing there is these days to a 'free-market" . We have governments around the world forming cartels to try to support the price of oil and they can't do it. The selloff over the last year or so and especially yesterday should be all the proof that is needed that governments can't just throw money at this and expect the demand for oil to increase. It should also prove to those who believe the oil market is rigged, or that prices are controlled by "BIG OIL", are absolutely wrong.

Naw,thats my department.

Hey Skipper,where's your lil buddy Gilligan today??

Unless you are the only entity producing a commodity, you are a price taker. OPEC since about 2013 or 2014 has been trying to deal with the resurgence of oil supply in America. There has been strong demand all along. Too much supply has been the problem. They were doing a pretty good job of managing this situation until they got involved in the price war with Russia. Then they got blindsided by the pandemic. There is simply no way to manage for an instantaneous drop in demand of 30%. What most people still don't seem to understand is that this won't be isolated to the oil industry. Unless the world is reopened soon for business, the situation currently happening in the oil industry will start occurring in nearly every industry. I can explain what this will look like or you can talk to your relatives who were alive during the depression.

Reread White's post above, he is right on.

He showed up on another thread.

Who's your little buddy, Skipper ?

w

may of needed a spa day after all the turmoil.

[quote Who's your little buddy, Skipper ? [/quote]

You are remember?

From what I've heard

This is happening due to lack of demand. I doubt we will see any fuel shortages due to this if that is true? They will just stop production until demand is back and/or not and just wait till their is a need to make more then raise price back up??

What I don't understand is why we still are buying from Russia and other countries!!!!????

Fill our resrves up with cheap oil then tell all non American producers to go elsewhere!

We may not be able to currently refine much of the crude we produce here and thus we sell oil and buy oil that works with the equipment we have now.

Bryce

^^^^^^^^^^^ THIS ^^^^^^^

Sounds like the finale piece of the puzzle is needed?

You are remember?
[/quote]

No,

I don't remember, Skipper.

My dementia & covid fever must be kicking In.

Where are Mary Ann & Ginger ?

Are you still chasing that old bag Mrs Thurston Howell the 3rd ?

w

he's been wacked out on Flintstones chewables since this whole coronagate virus started.