$50 oil, now what?

[suntan]

I wonder what the degree of backwardation is right now. If it's large we could see a massive draw down that catapults oil within a span of weeks.

[benyl]

So basically, gas prices will have an excuse to go up and nothing else changes.

[Darkane]

Just wait until Wednesday and then next Wednesday.

Refining capacity was only 83% in the US last week. If it hits 90+ this Wednesday we will have a massive draw. Might see another $2 hopefully.

Honestly, $60 is fine. I could care less about bonuses and the glory days. Just want steady, challenging employment without management treating you like shit because cheap oil.

Almost there!

[ExtraSlow]

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. I could care less about bonuses and the glory days. Just want steady, challenging employment without management treating you like shit because cheap oil.

Amen brother

[ExtraSlow]

Here's the Brent futures curve from a cnbc article today. I'm sure WTI has a similar shape although Brent is more relevant to floating storage and anything held in Africa, mid-east or Europe.



The scale is a bit weird, but you get the picture.

[ExtraSlow]

I'd say Brent is more important for worldwide storage draws, but here's the WTI futures curve from ARC financial.

[ExtraSlow]

Another arc futures WTI curve showing backwardation.

[Darkane]

$57 today, with our dollar we’re at $72.50.

Make it rain??

[Aleks]

WCS is around $40 so about $50 CAD.

[hampstor]

WTI - Current: 57.51 (Incremental USD 1.87)
Brent - Current: 64.35 (Incremental USD 2.28)

[Aleks]

Don't most Alberta producers get paid on WCS prices. It's the same thing with gas prices. NYMEX is $3USD, but AECO prices until recently were sub $1 and some days even negative.

[killramos]

I would say more companies outside of heavy oil get paid on Ed Light than WCS, which is more based on a diff to WTI and FX.

So this is still very good for Alberta conventional producers.

[ExtraSlow]

Futures curve expects WTI to be five bucks cheaper in 24 months. This is a good environment to discourage investment in longer term projects.

[HiTempguy1]

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Futures curve expects WTI to be five bucks cheaper in 24 months. This is a good environment to discourage investment in longer term projects.

Do you really, sincerely believe Bloomberg (or any other financial news source) can guess commodity pricing 24 months down the road?

It honestly seems like it wouldn't take much for oil to blow up to $100/barrel. A war here, a sudden drop in production there.

[dj_patm]

These forecasts have been so hilariously wrong since the initial drop there is no point of giving them the time of day.

[ExtraSlow]

Well they aren't exactly "predictions" 8n the sense you mean. The futures curve is a factual reporting of what contracts for delivery on those dates are really selling for.

[suntan]

What the hell's with the Comic Sans?

[ExtraSlow]

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What the hell's with the Comic Sans?

Hahaha, I never noticed that, but now it's bringing me back to the days if ICQ trolling. Ahhh, a simpler font from simpler times.

[J-hop]

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Hahaha, I never noticed that, but now it's bringing me back to the days if ICQ trolling. Ahhh, a simpler font from simpler times.

Uh oh

[killramos]

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What the hell's with the Comic Sans?

Just the bankers trying to relate to the normal folk.

You should see a Peyto preso.