$75 oil, now what?

[HiTempguy1]

So I'm having a bit of a tough time understanding how oil is on such a tear but we are getting headlines like the following:

https://business.financialpost.com/c...nters-red-zone


Worldwide oil production:


USA Oil Export:


USA Production:


Opec Total Production:


Iran Exports:


So OPEC has been actively trying their "best" (aka poorly doing so with lots of talk) of restricting their oil output. They basically did sweet f-all about it with the market tanking. Great. Now oil demand is back up, but they aren't in any rush to stop oil going on a tear and possibly damaging the economic recovery. So wtf?

Is OPEC just screwing around? Why isn't the USA with all that accessible crude in the world right now not going absolutely bonkers pumping oil? Iran being out of the picture will be 2,7mil gone, however, I see no reason why Iran being blacklisted they wouldn't sell to North Korea and China which could easily take all of that capacity, ESPECIALLY since China just cut US oil imports to basically zero recently.

[ExtraSlow]

USA IS pumping as much as possible. That's why the curve is going up.

[suntan]

USA has not pumped this much since it did doggy style on your mom.

[Manhattan]

There's like a $40 gap between WTI and WCS. We're still getting $30 to 40/bbl. :

[CompletelyNumb]

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There's like a $40 gap between WTI and WCS. We're still getting $30 to 40/bbl. :

That's called an economic recovery in this province though.

[you&me]

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That's called an economic recovery in this province though.

This reminds me of a comment I read on another forum recently, something to the affect of:

"Economic growth rates can be misleading, kinda like someone that shits in the corner of his house is making more of an improvement when he finally starts using a bucket than the guy who already just shit in a toilet"... Something like that, you get the gist. Thanks for the (government supplied) bucket, NDP

[Mitsu3000gt]

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There's like a $40 gap between WTI and WCS. We're still getting $30 to 40/bbl. :

Only if you're selling WCS, but it's like -$50 this morning I haven't seen diffs like this in my entire career.

[Darkane]

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Only if you're selling WCS, but it's like -$50 this morning I haven't seen diffs like this in my entire career.

Oh my god. It’s not even worth pumping.

I wonder if the technology from the UofC for pellet balls has been expedited somehow.

Govt grants???

[Mitsu3000gt]

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Oh my god. It’s not even worth pumping.

I wonder if the technology from the UofC for pellet balls has been expedited somehow.

Govt grants???

That's the spot market, but with all the apportionment going on, that is where a lot of volume has to be sold right now. Most of the lighter streams aren't as bad (SW, LSB, PSO, etc.) but they are still pretty horrible in the -20's. Diffs are typically wider over the winter months as well so we're kind of getting a double hit. Almost better off leaving it in the ground for now haha. All the pipeline companies with storage are laughing right now. Also what they are doing is apportioning people and then buying it back at a massive discount, which is shady AF.