$6.66/$4.44 barrel oil?

[The_Rural_Juror]

Now I can finally afford to live out a life long dream.

[dirtsniffer]

https://www.forbes.com/sites/jimcoll...assive-plunge/

Interesting article on the us fund that apparently held 25% of the may 2020 futures contract.

[rage2]

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Watch the movies BIG SHORT and MARGIN CALL. Very eye opening and easy for noobs like me.

I believe only 1 banker went to jail after the 09 debacle.

Trading Places. FCOJ futures!

[Toilet_X]

Honestly we wouldnt be in this mess if everyone would have listened to me about creating vehicles that runs off of Drakkar Noir. Im pretty sure thats what John Force used to use in his funny car.

[ZenOps]

I wonder what the USA thinks of the SPR now? They probably paid closer to $50 per barrel to fill that sucker up, at is now - it looks like massive overspending.

At least Canada got a few expensive barrels sold BC.

[The BMW Guy]

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https://www.forbes.com/sites/jimcoll...assive-plunge/

Interesting article on the us fund that apparently held 25% of the may 2020 futures contract.

I don't understand this article....USO rolls their May exposure by Apr 13th. So they would've been out of it by now.

[The_Rural_Juror]

May is up $32!!! There is hope for the empire!

[roopi]

USO halted

[RX_EVOLV]

Anyone bought HOD?? holy shit

[rage2]

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May is up $32!!! There is hope for the empire!

So yesterday really had nothing to do with oil prices even tho it dominated the headlines. It was just a situation where some contracts held by USO got into a squeeze as it came due and they needed to dump it at whatever loss or figure out how to accept oil, which they can't.

[Homerrca]

Is it time to convert all fuel to race fuel. Win win for everyone

[The_Rural_Juror]

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So yesterday really had nothing to do with oil prices even tho it dominated the headlines. It was just a situation where some contracts held by USO got into a squeeze as it came due and they needed to dump it at whatever loss or figure out how to accept oil, which they can't.

I don't know about that. USO already rolled over to the June contract by Apr 14. Yesterday's collapse was on May contracts.
They probably roll over a week earlier to avoid the volatility of the last few days of trading. The collapse is likely physical in nature.

That is a strange article that was linked earlier. Of course USO owned May WTI futures a week ago. They were still rolling out.

According to Bloomberg, USO owned 25% of the outstanding volume of May WTI oil futures contracts as of last week.

June is collapsing today.

[benyl]

And WTI is back at $15

[you&me]

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And WTI is back at $15

Hahaha, it sounds like you're saying it as if that's a good thing...

[The_Rural_Juror]

May is at $3 with very low volumes. June is at $15.

[benyl]

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Hahaha, it sounds like you're saying it as if that's a good thing...

no, I am under no illusion that Alberta isn't fucked.

[ExtraSlow]

June is going down hard this week

[arcticcat522]

So if USO was to rolls their May exposure by Apr 13th, but didnt. Would that violate any second rules?

[ExtraSlow]

From a purely mathematical kind of standpoint, it's neat to watch what happens to the 2 and 3 month out contracts as the current month rolls over.

And in terms of Alberta, or the industry being fucked, the current month and spot prices are only half the picture. 3-6-9 months out are very crucial for running economics on new wells. If those crash, it's truly Armageddon.

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I nearly got a job at a drilling contractor in February. Man I'll bet those places are puckered up hard. Most companies are shutting down rigs as fast as they can.

[nzwasp]

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From a purely mathematical kind of standpoint, it's neat to watch what happens to the 2 and 3 month out contracts as the current month rolls over.

And in terms of Alberta, or the industry being fucked, the current month and spot prices are only half the picture. 3-6-9 months out are very crucial for running economics on new wells. If those crash, it's truly Armageddon.

- - - Updated - - -

I nearly got a job at a drilling contractor in February. Man I'll bet those places are puckered up hard. Most companies are shutting down rigs as fast as they can.

I wonder where all the SAGD oil is going to go? can't shut that down.