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Oil under $10/barrel


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Well not if everyone's job is shut down and they are all staying home.  :D 

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New York (CNN Business)The boom in US production has made America the largest oil producer in the world and radically changed the economics from when it was a net consumer. It also means this latest oil price plunge will be far more damaging to the US economy than the massive oil price drops in 2008 or 1991.

Early Monday, Morgan Stanley put out an estimate saying if oil prices remain at low levels, it could shave 0.15 to 0.35 percentage points off of US gross domestic product in the first quarter. Morgan Stanley also said it is concerned that consumers won't spend any of the savings from lower gas prices.

https://edition.cnn.com/2020/03/09/business/oil-prices-us-economic-impact/index.html

My RVing friends are loving it but the same problem, so many destinations shut down they are mostly staying parked where they are or at home.

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You've all seen the price of gas at Pemex lately... down from 20.x to 15.x. Yet at the rate I'm using my vehicle, it will be weeks before I'm down even a quarter tank to take advantage of the price. Here in Riberas, only two pumps are being staffed.

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ICE Brent crude is currently trading at $26.  The NYMEX WTI figure around $10 is an artifact of the related futures contract which is about to settle when there is a requirement to take delivery and there is no storage capacity.  Petrol prices at the pump should reduce, but not to such absurd levels.  Commentators point out that low prices are the greatest motivation for american consumption, now obviously suppressed, and suggest that US refiners could be a good investment into the fall.

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When what other countries do suppresses the oil market in Mexico, I do think it's Mexican chat.

I don't care if it's foreign owned but Mexico MUST get its own refineries. At the very least, it would employ Mexicans and put money into MEXICO.

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27 minutes ago, happyjillin said:

Cheaper than a pack of cigarettes in Alberta. Are none of you aware of what Russia and Saudi Arabia started doing  to have caused all this and ad the covid-19 on top of  that buckaroos

Its a well known fact that Russia and Saudi Arabia started an oil war but due to demand destruction and it was only a matter of time anyway .  What's surprising is that the peso isn't devaluating today as a result of oil cratering but maybe the market saw it coming already.

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2 hours ago, Mainecoons said:

Wow!

Not really good for the U.S. though, a lot of production being shut down.

When the pendulum swings the other way it could be shocking.

There used to be a sign in one of the offices where I worked: "Please god, let there be one more oil boom -- I promise not to piss it away this time!" When times are good, oil companies overspend -- now they will suffer. Worked in that industry for many years . . . saw it over and over and over.

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Futures now at 2 bucks ! cheaper than water.  I exchanged dollars last week at 24.2, this morning, I was expecting much higher. Meanwhile the stock market is close to recovering most of the losses this year, crazy

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