Post New Article

Oil prices could fall below zero:
Analyst

Original Article

Posted By: MDConservative, 3/18/2020 12:14:45 PM

Plunging oil prices could be headed a lot lower – possibly below zero, according to one Wall Street analyst. West Texas Intermediate crude oil, the U.S. benchmark, fell by more than 10 percent Wednesday to near $24 a barrel, a level last seen in April 2002. “Oil prices can go negative,” wrote Paul Sankey, managing director at Mizuho Securities.

Comments:

The cost of production, transportation and storage are close to making oil too expensive to hold, thus the "negative value". The world is awash in oil; the flood getting deeper. Drill, baby, drill! On your dime...go ahead.

Post Reply

Reply 1 - Posted by: iSpartacus 3/18/2020 12:16:31 PM (No. 349981)
Onion?
3 people like this.

Reply 2 - Posted by: chance_232 3/18/2020 12:23:55 PM (No. 349988)
What happened to those endless predictions that oil would have run out by now.] Whatever will the governments do with sales tax dropping? And for the good news....... its much harder for the warmists to make a case for solar and wind with a glut of cheap oil out there. Look for SUV sales to surge.
12 people like this.

Reply 3 - Posted by: planetgeo 3/18/2020 12:29:11 PM (No. 349995)
"Below zero", eh? Excellent. I can't wait to have Chevron pay me to use their gas.
21 people like this.

Reply 4 - Posted by: Strike3 3/18/2020 12:42:01 PM (No. 350010)
Screw Fox. Their fearmongering has been worse than the other Fake News. There was no reason to mention Trump in relation to the panic in the market. I will never tune in again.
20 people like this.

Reply 5 - Posted by: texaspast 3/18/2020 12:48:04 PM (No. 350015)
This seems to have been written by someone who only knows about oil markets, not production. There is hardly any 'cost of storage' of oil. If it goes too low, you just leave it in the ground or produce only so much as is necessary to keep the O&G lease alive. The oil and gas industry is by its very nature a boom-and-bust business. Production from wells decreases over time. Price of oil goes up. Eventually it becomes profitable to drill again. Even with drilling going on, it takes a while for production to catch up to demand to lower prices. So more wells are drilled. Then the point is reached where production capacity exceeds demand, prices go down - and when prices fall, they do so quickly. There's your bust. It will be back.
17 people like this.

Reply 6 - Posted by: h24015 3/18/2020 12:50:21 PM (No. 350020)
I appreciate the way gas prices skyrocket instantly if there's a sniff that oil may climb a $1. Barrel of oil drops $20, price per gallon sure seems to defy gravity. Must be a quantum physics thing.
10 people like this.

Reply 7 - Posted by: bad-hair 3/18/2020 12:50:42 PM (No. 350021)
Cool I'm buying as many 1000 gallon gas tanks as I can get my hands on. I think Warren Buffet et al are ordering ne rail cars.
1 person likes this.

Reply 8 - Posted by: hurricanegirl 3/18/2020 12:53:22 PM (No. 350026)
And there went the stock market!
1 person likes this.

Reply 9 - Posted by: rockeysroomie 3/18/2020 12:55:15 PM (No. 350027)
Time to buy a Volt? Ha ha.
2 people like this.

Reply 10 - Posted by: PChristopher 3/18/2020 1:08:07 PM (No. 350040)
But, somehow, it will still be $3 a gallon or more
5 people like this.

Reply 11 - Posted by: DVC 3/18/2020 1:12:24 PM (No. 350046)
Below zero? I call BS. Not going to happen.
7 people like this.

Reply 12 - Posted by: bad-hair 3/18/2020 1:17:02 PM (No. 350048)
Said Wall Street Analyst Paul Sankey should have gone home after lunch and slept it off instead of making his employer look like an idiot. The boy's got a glowing future as an NYC swivel servant.
4 people like this.

Reply 13 - Posted by: Periwinkel 3/18/2020 1:29:48 PM (No. 350060)
If this is true and our energy companies go broke, we can thank the Saudis and the Russians...neither one is a friend of the US
5 people like this.

Reply 14 - Posted by: Proud Texan 3/18/2020 1:38:34 PM (No. 350073)
Wall Street Analyst Paul Sankey must be making a ton of money selling short on oil stocks. These types of articles are a great way for such scum to manipulate the market.
2 people like this.

Reply 15 - Posted by: Delilah 3/18/2020 2:06:01 PM (No. 350102)
I saw gas for $1.46 this morning and realized the market had gone down, down, down.
1 person likes this.

Reply 16 - Posted by: mobyclik 3/18/2020 2:27:25 PM (No. 350124)
Drove by my local Sunoco this morning here in Florida: $2.07. Week ago it was $2.39.
1 person likes this.

Reply 17 - Posted by: kono 3/18/2020 2:49:47 PM (No. 350139)
“Oil prices can go negative,” wrote Paul Sankey, managing director at Mizuho Securities. Another shining example of why browsing headlines can disconnect you from reality. There's a major difference between saying something can happen and saying it could happen. Both imply it's possible (i.e not forbidden by the laws of time and space), but the latter implies there's a non-zero probability that it will happen.
2 people like this.

Reply 18 - Posted by: dst4life 3/18/2020 3:35:50 PM (No. 350160)
Someone at the Onion has infiltrated Fox. Does this mean when we go buy gasoline we won't be charged? Or perhaps the more gasoline we buy the bigger that "stimulus check" will be. The mind reels.
2 people like this.

Reply 19 - Posted by: DVC 3/18/2020 3:36:33 PM (No. 350161)
Local gas is $1.78 or $1.79 at some of our more competitive stations already. If it "goes below zero" I'll stop by every few days and pick up some cash and gas. /s off This is just total malarkey.
3 people like this.

Reply 20 - Posted by: MDConservative 3/18/2020 4:56:34 PM (No. 350219)
It is apparent many have not read the article whatever. The concept isn't difficult to grasp...if a good has no buyers due to oversupply, the good must be stored (added costs) or otherwise disposed (cut losses). You hold a barrel of oil for which you paid $18. The market price has collapsed to $10. What are you going to do with that barrel? Store it at further cost to yourself hoping for a price gain? Or sell for a considerable loss, i.e. negative value? How much more oil are you apt to buy under these conditions? How much more would you produce from your wells where a barrel costs you $30? Let's not forget, the Saudis and Russians can produce massive amounts and bring it to market at prices American producers cannot come close to matching. Other major producers can play along. What will this do to the US export market? We've bought foreign oil before in greater quantities...because it was cheaper than American-produced crude and not seen as an environmental threat. It can happen again.
0 people like this.

Reply 21 - Posted by: DVC 3/18/2020 5:12:40 PM (No. 350238)
Yes, all true, and all unsurprising. As to the "negative value", perhaps BELOW COST might be construded as 'negative value', but they will not get to where they are paying someone to take it away. As far as importing oil, no problem, as long as we have our wells there to prevent the Saudis from holding us hostage again like they did in the .70s, when our genius leaders were talking about "peak oil" and "the planet will soon run out", which was pure BS then and still is.
4 people like this.

Reply 22 - Posted by: Historybuff 3/18/2020 5:13:27 PM (No. 350239)
Since Exxon/Mobil, Shell Etc. are not manufacturing oil, only buying it on the open market, that's just fine. The make nine to twelve cents per gallon if oil is $23. per barrel or $110. per barrel. As far as not drilling domestic oil? If ya leave it in the ground it don't spoil! Oil is a commodity. It goes up, it goes down. Nice to have that socked away until the next time there is a cut off from crazyland in the middle east.
1 person likes this.

Reply 23 - Posted by: red1066 3/18/2020 5:24:02 PM (No. 350256)
Well with everything closed, and nothing to do but watch the same home improvement shows over and over again, one might as well go for a drive just to get out of the house.
2 people like this.

Reply 24 - Posted by: Sandbar 3/18/2020 5:28:09 PM (No. 350258)
$1.55 here in Indy and a major brand. #5 is on the mark. Having grown up in an oil field, I've seen many cycles when producers just cap the wells and wait. It doesn't take much to start pumping again when the price is right.
2 people like this.

Reply 25 - Posted by: rikkitikki 3/18/2020 7:19:51 PM (No. 350364)
Last month in Houston, the pump price of $2.10/gal included $0.80/gal in taxes...half State, half Federal. I don't really expect either agency from giving up its 'take.'
1 person likes this.

Reply 26 - Posted by: Venturer 3/18/2020 8:28:14 PM (No. 350399)
The prics hasn't gone down in my l;ocal stations.
0 people like this.

Reply 27 - Posted by: Muguy 3/19/2020 7:36:51 AM (No. 350686)
Boom & Bust. This is the legacy of the oil industry. Oil will never be 'negative' because they will simply stop producing so much until prices rise again. the glut of cheap foreign oil due to the U.S. producing OUR OWN oil is causing this, and the workers in the oil field will be out of work again as we have backed off drilling for a time. We drilled here, we drilled now, and we pay less. There are always consequences and little equilibrium about it. Boom & Bust.
0 people like this.

Reply 28 - Posted by: JackBurton 3/19/2020 11:08:22 AM (No. 350935)
Hahahahahaha
0 people like this.

Reply 29 - Posted by: JackBurton 3/19/2020 11:59:24 AM (No. 350994)
Just got back from Costco. $1.559
0 people like this.

Below, you will find ...
Most Recent Articles posted by "MDConservative"
and
Most Active Articles (last 48 hours)
Most Recent Articles posted by MDConservative"
U.S. Senate races to agree
on massive coronavirus relief package
14 replies
Posted by MDConservative 3/22/2020 10:16:08 AM Post Reply
Republicans and Democrats in the U.S. Senate on Saturday scrambled to complete a deal on a $1 trillion-plus bill aimed at stemming the coronavirus pandemic’s economic fallout for workers, industries and small businesses. But after a second day of marathon closed-door negotiations, there was no sign of an overarching deal between negotiators, despite Republicans’ claims of bipartisan agreement on specific issues including unemployment insurance and small business assistance. “The past two days of intense bipartisan talks are very close to a resolution,” said Senate Majority Leader Mitch McConnell, who intends to hold a vote to pass the sprawling package on Monday.
Apache Corp. plans Texas layoffs 1 reply
Posted by MDConservative 3/20/2020 10:04:35 PM Post Reply
Houston-based Apache Corp. is planning a round of layoffs in Midland, Texas. The oil and gas exploration and production company filed a Worker Adjustment and Retraining Notification Act letter with the state saying that Apache plans to conduct a “mass layoff” at its 303 Veterans Airpark Lane facility in Midland. About 85 employees are affected, with the separation process beginning March 18, according to the WARN letter, which the Texas Workforce Commission released March 20. "We are lowering our Permian rig count to zero and focusing capital elsewhere in our portfolio...
Wisconsin Republicans all vote against
bipartisan paid leave bill responding
to coronavirus COVID-19 pandemic
6 replies
Posted by MDConservative 3/20/2020 12:04:20 PM Post Reply
A bill mandating paid sick leave and expanding federal unemployment benefits that won resounding bipartisan approval in the House and Senate received no support from Wisconsin’s Republicans, who say it was rushed and would put further strain on small businesses. The legislation, signed into law by President Donald Trump on Wednesday evening, expands federal unemployment benefits and mandates employers provide paid sick leave to employees along with a host of other measures to ease the economic hardships the COVID-19 coronavirus pandemic has wrought upon many Americans.
Oil prices could fall below zero:
Analyst
29 replies
Posted by MDConservative 3/18/2020 12:14:45 PM Post Reply
Plunging oil prices could be headed a lot lower – possibly below zero, according to one Wall Street analyst. West Texas Intermediate crude oil, the U.S. benchmark, fell by more than 10 percent Wednesday to near $24 a barrel, a level last seen in April 2002. “Oil prices can go negative,” wrote Paul Sankey, managing director at Mizuho Securities.
What all the countries
that contained coronavirus
have in common
8 replies
Posted by MDConservative 3/18/2020 11:18:09 AM Post Reply
On Feb. 8, alongside stories of panic buying toilet paper in Hong Kong supermarkets, Bloomberg published an opinion piece titled “Hong Kong is showing symptoms of a failed state.” A little more than a month later, store shelves in Europe, Australia, and North America are being ransacked while Hong Kong’s shelves are being re-stocked. As Western cities started to forcibly close restaurants and bars, Hong Kong’s people slowly started to relax.
Crude Oil Prices Crash As 'OPEC+ Is Dead'
With All Production Limits Gone
23 replies
Posted by MDConservative 3/6/2020 1:14:02 PM Post Reply
Crude oil prices plunged as talks at the OPEC+ meeting Friday collapsed without a deal, meaning all prior agreements to curb production will end next month. Not only did they not agree to additional output curbs, but starting in April, current limits of 2.1 million barrels per day will no longer continue.
Paul Ryan says a Bernie Sanders nomination
would help GOP win back the U.S. House
20 replies
Posted by MDConservative 2/22/2020 7:55:04 AM Post Reply
Former House Speaker Paul Ryan said Friday he views President Donald Trump as the clear favorite to win reelection against any Democratic challenger in 2020 because of a “dream” economic environment for an incumbent. But Ryan singled out Bernie Sanders as the Democrat against whom Republicans would thrive politically. “As a Republican … I love the idea of a Sanders candidacy..."
'An unacceptable and upsetting environment':
2020 Democratic Host Committee under investigation
9 replies
Posted by MDConservative 2/4/2020 9:36:32 AM Post Reply
The two top officials overseeing Milwaukee's host committee for the 2020 Democratic National Convention were sidelined Monday amid allegations of a toxic work culture. In a letter to staff obtained by the Journal Sentinel, the board said it had retained an attorney to investigate "concerns about the work environment" for the Milwaukee 2020 Host Committee. During the investigation, Liz Gilbert, president of the host committee, will not be in the office and "will not have direct contact with staff," the letter says. Adam Alonso, the chief of staff for the group, has been placed on administrative leave, pending the outcome of the probe.
Is there renewed hope
for 'Shoeless' Joe Jackson
gaining Hall of Fame?
5 replies
Posted by MDConservative 1/19/2020 12:22:20 PM Post Reply
Perhaps there’s a place for “Shoeless” Joe Jackson in baseball’s Hall of Fame, after all. Efforts to have the late and legendary player with a .356 career batting average included in baseball immortality may intensify after a recent revelation by Major League Baseball that acknowledges that a deceased player is no longer bound by the constraints of a lifetime banishment from the game.
With 342 people killed in 2019,
Baltimore tied for second-most homicides,
on record
10 replies
Posted by MDConservative 12/27/2019 12:23:36 PM Post Reply

A 7-month old’s death and two fatal shootings the day after Christmas pushed the number of people killed in Baltimore this year to 342 — the second-highest total on record. Baltimore already surpassed this week the yearly record for killings per capita, due to the city’s rapid population decline. The city’s highest number of homicides was 1993, when 353 people were killed and the city had more than 100,000 additional residents. This year’s violence also surpasses 2018, which saw 305 homicides. In both 2015 and 2017, 342 people were killed.

Massive redwood tree falls,
kills hiker in California park
16 replies
Posted by MDConservative 12/27/2019 12:13:12 PM Post Reply
A huge redwood tree fell and killed a man visiting Muir Woods National Monument in California on Christmas Eve, authorities said Thursday. Subhradeep Dutta, 28, of Edina, Minnesota, died while walking on a marked dirt trail with two other people in the park north of San Francisco famous for its towering trees, according to the Marin County coroner's office and a spokesman for the park. Dutta was pinned by the trunk of the 200-foot-tall (61-meter-tall) tree and died at the scene. The trunk measured more than 4 feet (1 meter) in diameter.
'Vital that he be impeached': Carly Fiorina
breaks ranks with Republicans on Trump
43 replies
Posted by MDConservative 12/16/2019 12:10:15 PM Post Reply
Former Republican presidential candidate Carly Fiorina said she supports impeaching President Trump. “I think it is vital that he be impeached, [but] whether removed this close to an election, I don’t know. But I think the conduct is impeachable,” she told CNN. The former Hewlett-Packard CEO, who ran against Trump in 2016, said the president’s conduct was “destructive to the republic.”
Most Active Articles (last 48 hours)
Cher Declares President Trump ‘a Murderer’ 61 replies
Posted by Imright 3/21/2020 1:10:31 PM Post Reply

Cher has called President Donald Trump “a cancer ravaging our nation.” She demanded last week that the president step down before he ends up killing thousands of Americans. And now, the left-wing pop icon has declared President Trump a “murderer.”“trump has access 2 every mask, shield, gown, glove, bed, ventilator, respirator, test kit, national guardsman, soldier from Army corps of engineers, nurses, dr.’s, techs, 1st responders needed 2 save the lives of coronavirus patients, & caregivers,” Cher said

Rachel Maddow demands that networks STOP
airing Trump's press conferences about coronavirus
crisis and blasts his 'fairytale' promises about
malaria drug to combat the pandemic
55 replies
Posted by Imright 3/21/2020 11:22:24 AM Post Reply
MSNBC host Rachel Maddow has demanded that networks stop airing White House updates about the coronavirus pandemic, excoriating President Donald Trump for making optimistic promises about an unproven drug to treat the infection. 'I know we ought to be getting used to this kind of thing by now, but I'm not,' Maddow said on her show Friday night. 'President Trump today, again, just flat-out wrong in public about this malaria drug that has gotten stuck in his mind, quite some distance from the facts.' Maddow was referring to Trump's sweeping claims about a malaria drug called hydroxychloroquine, which is being investigated as a potential treatment
Dr Anthony Fauci facepalms and
rolls his eyes as President Trump
rants about the 'deep state' during
coronavirus press conference
51 replies
Posted by Harlowe 3/21/2020 1:03:07 PM Post Reply
Dr Anthony Fauci has been caught smirking at President Donald Trump during a coronavirus press conference, further fueling rumors of tension between the pair. The incident occurred Friday afternoon, while the Commander-in-chief was giving the media an update on the COVID-19 outbreak flanked by members of the White House Coronavirus Task Force team, which includes Dr Fauci. The highly-respected immunologist looked to roll his eyes and suppress laughter as Trump lashed out at the State Department, describing them as the 'Deep State department'. Dr Fauci then placed his hand over his face, in what many described as a 'face palm' reaction to Trump's inflammatory remarks.
De Blasio: People Will Die Because
Trump ‘Will Not Lift a Finger to Help’
46 replies
Posted by Imright 3/22/2020 12:02:26 PM Post Reply
Sunday on NBC’s “Meet the Press,” New York Mayor Bill de Blasio accused President Donald Trump of not lifting “a finger to help” with the coronavirus breakout.De Blasio said, “The truth is, and New Yorkers and all Americans deserve the truth, it’s only getting worse. April and May are going to be a lot worse. Right now, we are a third of the cases in the country. That’s going to get worse. We’re about two thirds or more of the cases in New York State. That’s going to get worse. But the president of the United States is from New York City, and he will not lift a finger
FDA Must Approve
Hydroxychloroquine Now
43 replies
Posted by Magnante 3/22/2020 8:29:18 AM Post Reply
You are being lied to about the drugs that heal COVID19. America's FDA, and National Institute of Allergy and Infectious Diseases Director Dr. Anthony Fauci, are dragging their feet on approving a drug that provides very strong positive effect on COVID19. (snip) Fauci is taking the position that he and the US government should not approve Hydroxychloroquine because it might not be safe and might not be effective, based on his smear of high-quality science as mere anecdote.
Anthony Fauci, the NIH’s face of the
coronavirus, is a deep-state Hillary
Clinton-loving stooge
40 replies
Posted by PageTurner 3/21/2020 7:06:25 AM Post Reply
Anthony Fauci, M.D., the 79-year old head of the National Institute of Allegy and Infectious Diseases (NIAID), has become the #1 point man on the government’s role in the coronavirus crisis. Fauci has worked for the National Institutes of Health (NIH) his entire professional life. In the past, for more than two decades starting in the mid-1980s, he was the medical establishment’s face of HIV-AIDS – omnipresent on television when AIDS was hot and ever present at international AIDS conferences well into the 21st century. Always, he was an enthusiastic advocate of throwing more federal money at the problem of AIDS. He's widely praised in the press.
Are America, and Trump, Being Played? 38 replies
Posted by gpau 3/21/2020 9:17:09 AM Post Reply
Our concern about Donald Trump in the campaign of 2016 was not about his personal morals. ... It feels increasingly like Americans are watching execution of a plan to take down America as a constitutional republic, and Trump as president, fed by a CIA-type psychological assessment of Trump that bet on his ‘go big’ instincts that are untethered by a deep ideological understanding and appreciation for what truly makes America exceptional and great.
‘There’s no playbook for this’:
Biden trapped in campaign limbo
37 replies
Posted by MissMolly 3/22/2020 4:37:54 AM Post Reply
Joe Biden reached a new and heady milestone when he shellacked Bernie Sanders in Florida, Illinois and Arizona to become the de facto Democratic nominee for president. But there was no soaring speech to acknowledge the moment. He never took the stage amid a sea of Biden signs or before an adoring crowd on national television. Biden was instead stuck in a makeshift studio in his Delaware home, webcasting his remarks with a low-quality personal computer camera against a straight-out-of-YouTube black backdrop and two American flags. He warned about the coronavirus contagion. He offered an olive branch to Bernie Sanders. Then, despite two consecutive weeks of smashing victories,
U.S. Orders Up To A
Yearlong Break On
Mortgage Payments
36 replies
Posted by Pluperfect 3/21/2020 4:47:11 AM Post Reply
Homeowners who have lost income or their jobs because of the coronavirus outbreak are getting some relief. Depending on their situation, they should be eligible to have their mortgage payments reduced or suspended for up to 12 months. Federal regulators, through the mortgage giants Fannie Mae and Freddie Mac, are ordering lenders to offer homeowners flexibility. The move covers about half of all home loans in the U.S. — those guaranteed by Fannie and Freddie. But regulators expect that the entire mortgage industry will quickly adopt a similar policy. Under the plan, people who have suffered a loss of income can qualify
Calls Increase for MSM to Stop Airing
Trump Live: ‘You Will Get People Killed’
35 replies
Posted by Imright 3/21/2020 4:09:30 AM Post Reply
Calls are increasing for cable networks to stop airing President Donald Trump’s press conferences live as critics believe Trump is turning White House news briefings into virtual campaign rallies that can “get people killed” with lies about the Coronavirus crisis. The pressure only increased after Trump’s Friday briefing.The Atlantic’s James Fallows believes the attention-starved Trump is turning the press conferences into “virtual campaign” rallies and Trump would actually lose interest in showing up if the media did not cover the briefings live.“Also, as a practical matter, if the briefings were no longer covered live, Trump would lose interest in attending himself,” Fallows argues.
Even if legal, politicians profiting
off inside information amid
coronavirus crisis is outrageous
33 replies
Posted by Pluperfect 3/21/2020 4:29:24 AM Post Reply
As the novel coronavirus works it way through the United States, many Americans have seen their savings dwindle as the stock market continues its unprecedented free fall. But for a handful US senators, the crisis was cause for a windfall. That’s because Richard Burr and Kelly Loeffler, both of whom were briefed for weeks as the coronavirus approached America, decided it was a good idea to use their inside information to dump over a million dollar in stocks. Sens. Diane Feinstein and Jim Inhofe also sold significant amounts of stock.
Why does Russia, population 144 million, have
fewer coronavirus cases than Luxembourg?
31 replies
Posted by NorthernDog 3/22/2020 9:24:22 AM Post Reply
Russian President Vladimir Putin said this week his country managed to stop the mass spread of coronavirus -- and that the situation was "under control," thanks to early and aggressive measures to keep more people from getting the disease. (Snip) Russia's early response measures -- such as shutting down its 2,600-mile border with China as early as January 30, and setting up quarantine zones -- may have contributed to the delay of a full-blown outbreak, some experts say. A strong record on testing "The director-general of WHO said 'test, test, test,'" Dr. Melita Vujnovic, the World Health Organization's representative in Russia, told CNN
Post New Article