$6.66/$4.44 barrel oil?

[The_Rural_Juror]

You can reduce production.

[googe]

What happens if traders refuse delivery?

[sabad66]

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You can reduce production.

not very easy to do with SAGD. pretty sure they need to keep things operating so that the wells stay warm enough, otherwise it could destroy the formation.

[The_Rural_Juror]

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What happens if traders refuse delivery?

Pay damages to the seller.

[bigboom]

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not very easy to do with SAGD. pretty sure they need to keep things operating so that the wells stay warm enough, otherwise it could destroy the formation.

A lot of it depends on the formation and well characteristics. Things like water cut and such play a big difference in whether or not you can slow down or even shut in thermal/sagd wells. Back in ~2015ish there was SAGD wells shut in that came back on production pretty close to where it was prior to the shut in. Conoco is already shutting in production at it's Surmont play.

[pheoxs]

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not very easy to do with SAGD. pretty sure they need to keep things operating so that the wells stay warm enough, otherwise it could destroy the formation.

They need to keep producing but they can still cut production quite a bit. There is still demand for oil just a lot less. So the facilities that can fully shutdown probably will right now. Hopefully theres enough space in the market for SAGD production as well

[04Terminator]

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Pay damages to the seller.

Settlement day also means you have to pay out the full value of your contract, which was the bigger element here.

https://www.investopedia.com/ask/ans...tract-cost.asp

[ExtraSlow]

The number of people who have been researching commodities futures contracts and options has really gone up. I hope the general awareness of the value of energy and other commodities has gone up as well.

Knowledge is power folks.

[The_Rural_Juror]

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Settlement day also means you have to pay out the full value of your contract, which was the bigger element here.

https://www.investopedia.com/ask/ans...tract-cost.asp

Yes, you are correct if we are talking about futures with the presence of a clearinghouse. The broker can also sell your contracts when you fail to meet your margin calls.
If you are a producer selling to a marketer, there isn't usually a clearinghouse. In which case, you are going to court or sending extrafast thugs.

- - - Updated - - -

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Knowledge is power folks.

Power is for the people.

[ExtraSlow]

Fun times looking at the futures tank.

[Buster]

I dont look at oil prices at all. Does it normally look like a sloping curve like that?

[Disoblige]

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The number of people who have been researching commodities futures contracts and options has really gone up. I hope the general awareness of the value of energy and other commodities has gone up as well.

Knowledge is power folks.

What price should I get in on HOD tomorrow?

[ExtraSlow]

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What price should I get in on HOD tomorrow?

I cannot ever reccomend that investment to anyone at any time.

[Disoblige]

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I cannot ever reccomend that investment to anyone at any time.

But please. I don't like to read and understand what I trade. I just want to make money fast and easy.

real talk: leveraged ETFs are not investment tools by the way :P

[ExtraSlow]

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But please. I don't like to read and understand what I trade. I just want to make money fast and easy.

real talk: leveraged ETFs are not investment tools by the way :P

In that case, cash out every dime in your heloc asap and buy the highest leverage asap!

[The_Rural_Juror]

You are anti-'berta if you buy HOD because you are betting that cattle prices will go down.

[killramos]

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You are anti-'berta if you buy HOD because you are betting that cattle prices will go down.

This man gets it

[Disoblige]

People who trade HOD are from BC, Ontario, Quebec, the Maritimes, and/or Aspen.

[The_Rural_Juror]

Oil is roaring back to $16 this morning.

[ExtraSlow]

It'll be a short rally. EIA report today shows nothing had gone into SPR as of April 17th, and production basically hasn't dropped at all.
If you though storage was full before.....