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U.S. oil dropped more than 7% to trade around an 18-year low on Monday as demand continues to evaporate, and as Saudi Arabia and other OPEC+ nations prepare to ramp up production.
With much of the world in lockdown as the coronavirus pandemic rages on, demand for oil has fallen off a cliff. People aren’t travelling and business has slowed, reducing the need for jet fuel and gasoline.
Oil falls back to 18-year lows below $20 as global demand evaporates
I doubt the House would pass this, but we should be expanding the Strategic Petroleum Reserve, possibly by filling old salt mines and certain oil wells for retrieval at a higher price, and the treasury can pocket the difference as they sell it to oil companies for refining or shipping.
At $66 a bbl (high in 2019 was $66.30), we are looking at a $46 bbl profit. That is like $4.6 billion on 100 million bbl. (we use ~ 21 million bbl per day*) . Chicken feed at government budget impact, but hey, a billion here, four billion there, and it starts adding up.
* In 2019, the United States consumed an average of about 20.46 million barrels of petroleum per day, or a total of about 7.47 billion barrels of petroleum products.
Oil falls back to 18-year lows below $20 as global demand evaporates
I doubt the House would pass this, but we should be expanding the Strategic Petroleum Reserve, possibly by filling old salt mines and certain oil wells for retrieval at a higher price, and the treasury can pocket the difference as they sell it to oil companies for refining or shipping.
At $66 a bbl (high in 2019 was $66.30), we are looking at a $46 bbl profit. That is like $4.6 billion on 100 million bbl. (we use ~ 21 million bbl per day*) . Chicken feed at government budget impact, but hey, a billion here, four billion there, and it starts adding up.
* In 2019, the United States consumed an average of about 20.46 million barrels of petroleum per day, or a total of about 7.47 billion barrels of petroleum products.
What? How are we going to sell US produced oil at $66/barrel when the market is at $20? Please clarify.
Oil falls back to 18-year lows below $20 as global demand evaporates
I doubt the House would pass this, but we should be expanding the Strategic Petroleum Reserve, possibly by filling old salt mines and certain oil wells for retrieval at a higher price, and the treasury can pocket the difference as they sell it to oil companies for refining or shipping.
At $66 a bbl (high in 2019 was $66.30), we are looking at a $46 bbl profit. That is like $4.6 billion on 100 million bbl. (we use ~ 21 million bbl per day*) . Chicken feed at government budget impact, but hey, a billion here, four billion there, and it starts adding up.
* In 2019, the United States consumed an average of about 20.46 million barrels of petroleum per day, or a total of about 7.47 billion barrels of petroleum products.
What? How are we going to sell US produced oil at $66/barrel when the market is at $20? Please clarify.
Oil falls back to 18-year lows below $20 as global demand evaporates
I doubt the House would pass this, but we should be expanding the Strategic Petroleum Reserve, possibly by filling old salt mines and certain oil wells for retrieval at a higher price, and the treasury can pocket the difference as they sell it to oil companies for refining or shipping.
At $66 a bbl (high in 2019 was $66.30), we are looking at a $46 bbl profit. That is like $4.6 billion on 100 million bbl. (we use ~ 21 million bbl per day*) . Chicken feed at government budget impact, but hey, a billion here, four billion there, and it starts adding up.
* In 2019, the United States consumed an average of about 20.46 million barrels of petroleum per day, or a total of about 7.47 billion barrels of petroleum products.
The idea is to have the (federal?) government hoard oil available at the current low price (due to reduced demand) and later sell that oil (for a profit) when the price (demand for it) returns to normal. Placing the (federal?) government in charge of profitable commodity trading (using public funds) is dangerous territory to enter.
Not when you hemorrhage money like the US does.
Is that sort of like the media creating a panic to boost its ratings?Hmm... allow the government the power to create an economic crisis and then to use the existence of that (government created) economic crisis to enrich itself. What could possibly go wrong with that plan?
All kidding aside, this is very true. A week ago, it was even truer.Start purchasing long term call options, now is the time to buy. There is serious money to be made.
Is that sort of like the media creating a panic to boost its ratings?
He is saying buy the oil when prices are depressed and then resell when the market recovers. Smart idea. I am sure some private equity folks will do it. Government can't do it because of the ffak they would get. For example Trump sold to friends,Biden sold to companies who hired is son. You know the B.S. we get every day.
The idea is to have the (federal?) government hoard oil available at the current low price (due to reduced demand) and later sell that oil (for a profit) when the price (demand for it) returns to normal. Placing the (federal?) government in charge of profitable commodity trading (using public funds) is dangerous territory to enter.
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