Prelude to the $6.66 thread.
Prelude to the $6.66 thread.
Last edited by The_Rural_Juror; 04-19-2020 at 09:46 PM.
What website is that quote from?
Looking around
Wondering what became
Of what I once knew
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I'm probably one of the only people in Alberta that has never worked in O & G so can someone please ELI5, how the hell is A) WTI @ $13.xx and B) WCS @ $11.xx?
A) What the actual fuck?
B) I thought there was always a big spread between WTI & WCS?
"Masked Bandit is a gateway drug for frugal spending." - Unknown303
Think it's West Texas Intermediate and Western Canada Select but I'm not an O&G person so I could be wrong. This is all a fight between major world players in the oil market and this would be the fallout as a result. In my pretty much uneducated opinion of course.This quote is hidden because you are ignoring this member. Show Quote
I saw something in the recycling bin of one of my cleans once that explains this perfectly. Allow me to attempt to ELI5. It is due to a timing difference of when the products are traded.
WCS price = WTI + WCS Differential
The WTI price used is the WTI price of today (April 20) for delivery in a future period (for today the first contract is for July delivery). This is quoted in an outright price (for example : $20)
The WCS differential is the WCS price for delivery in the current month (April) that was traded in the first month prior (March 1-15ish). However, because the April WCS trading window has been closed since March 16ish, the quote you see may be spot differentials (WCS traded on April 20 for April delivery). This is traded as a differential (for example : WTI - $15).
The net result of the above is WCS = $20 - $15 = $5.
There's no "law" that says WCS price has to move in parallel with WTI. We talk about that differential because it's simple, not because it's accurate.
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They don't. The timing difference assures that. But that is how WCS is traded (as a differential to WTI) according to the spiral bound Hilroy.This quote is hidden because you are ignoring this member. Show Quote
Last edited by The_Rural_Juror; 04-20-2020 at 07:28 AM.
Title is not sensational enough. Needs to be "Free oil".
Cocoa $12,000 per ton.
Spot price is still $22-23, tomorrow when the may contracts expire it will drop like a stone - for real.
But, like @ExtraSlow says, we need a glorious drop to allow a recovery. Sticking around $25 will be far worse than a total crash.
Cheap oil absolutely DRIVES boom. In 2-5 years, let us all sit down for double lobster meat subs.
"The most merciful thing in the world, I think, is the inability of the human mind to correlate all its contents... some day the piecing together of dissociated knowledge will open up such terrifying vistas of reality, and of our frightful position therein, that we shall either go mad from the revelation or flee from the light into the peace and safety of a new Dark Age."
-H.P. Lovecraft
The problem is the shale oil industry can spin up wells way faster than any crash before.This quote is hidden because you are ignoring this member. Show Quote
If a oilsands project and a bunch of shale oil companies all go under the latter will pop back up much quicker once prices go up.
Companies with firm service transportation, unused storage, or hedges could make a killing if they can sell all three and shut in production. Hears SE sask has some crazy shit happening with pipeline contracts, I assume crazy shit is happening elsewhere too.
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Yep, true capacity destruction takes more than a few marginal producers gong bankrupt. Pressure pumpers going bankrupt would have a longer term impact, so I guess canadian should be hoping for US pumpers to go under?This quote is hidden because you are ignoring this member. Show Quote
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$8.75
$7.69 right now.
What
The
Fuck???
"Masked Bandit is a gateway drug for frugal spending." - Unknown303
why is the June contract price not dropping (since this morning) when the May contract price is dropping like a rock. Is this people hoping/better things will be in better shape 30 days from now? is this a sign that when things do rebound it is going to bounce back hard?
A footlong is more expensive than a barrel of WTI soon...
Under $5 USD
Storage is probably full in May and not as full in June.This quote is hidden because you are ignoring this member. Show Quote