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Oil under $10/barrel


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Here's the link and partial pasted explanation from Barron's online

https://www.barrons.com/articles/oil-futures-fall-below-1-for-first-time-ever-51587406408

West Texas Intermediate oil futures were plunging Monday afternoon to below $1 a barrel—the lowest price since crude futures started trading in 1983. The previous low was $10.20, which crude hit on March 31, 1986.

Oil has been tumbling for months, but fell off a cliff on Monday in part because of a technical shift . The May crude futures contract expires on Tuesday, and when futures expire their price tends to converge with the spot price of the commodity. Anyone buying the May contract on Monday is likely planning on taking physical possession of the oil. And no one right now seems to want to own a barrel of oil.

Physical oil being sold at pipelines is selling for less than $10 because there is so little demand. Few people are driving or flying as the world hunkers down to deal with the coronavirus.

Refineries don’t want to buy crude they can’t turn profitably into gasoline, so it is being pumped into storage tanks. The problem is, those storage tanks are now starting to fill up, so no one wants any new oil.

 

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INDEX UNITS PRICE CHANGE %CHANGE CONTRACT TIME (EDT)
USD/bbl. -38.30 -56.57 -309.63% May 2020 3:41 PM
USD/bbl. 25.96 -2.12 -7.55% Jun 2020 3:42 PM
USd/gal. 66.51 -4.56 -6.42% May 2020 3:41 PM
USD/MMBtu 1.95 +0.20 +11.35% May 2020 3:41 PM
USd/gal. 89.45 -6.18 -6.46% May 2020 3:39 PM
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22 hours ago, Ferret said:

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.

It was news when the US refiners started selling their own US branded gasoline that they intended to build refineries in Mexico. I believe they are buying refined gasoline from Pemex at this time. At Texas prices they could afford to truck down their refined product and sell it here. I don't really think Pemex can compete with the world's publicly traded oil companies as they willingly tolerate too much shrinkage. I think a foreign refiner here would not do so. That said prices like we are seeing do not fund any refinery expansion.

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Agree. This is not the time but it should be a wake up call and I can't, for the life of me, understand why it was never done during the "good" times. The same goes for Canada... shipping tar oil is hazardous.

We dumped anything to do with oil ten years ago. It is a "fossilized" industry whose time has passed. A "dinosaur" if you will. We need CLEAN energy in this world and it better happen soon!

 

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20 minutes ago, Ferret said:

Agree. This is not the time but it should be a wake up call and I can't, for the life of me, understand why it was never done during the "good" times. The same goes for Canada... shipping tar oil is hazardous.

We dumped anything to do with oil ten years ago. It is a "fossilized" industry whose time has passed. A "dinosaur" if you will. We need CLEAN energy in this world and it better happen soon!

 

As a Canadian,please lose the TAR  reference to OIL sands which is an attempt by other interests,mainly from one particular country to kill Canada's sales and or keep them low /barrel. Shipping heavy oil is no more hazardous than light crude by pipe or rail. Rail is the more dangerous for either.

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What does my computer have to do with weaning yourself off oil. Unless you are referring to the fact that it's made out of plastic? I don't care what the chassis is made of... could be iron for all I care. How about driving economical vehicles and not gas guzzling behemoths ? Even a hybrid is a step in the right direction. It's about going forward not backward to protect the oil industry.

 

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11 minutes ago, happyjillin said:

Pie in the sky idea for at least one hundred years but hey do your part if that's your thing and get rid of everything in your casa including your computer. Wean away-eh!

Computers run on oil? No wonder mine is a bit sluggish lately. Have to try to find the dipstick. I realize you probably mean plastics, but the amount of oil used for them is miniscule, and should be feserved exclusively for that purpose - until something better comes along.

 

 

 

 

 

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And the electricity to use it comes from my solar panels. Electricity in most of Mexico uses fossil fuel to make it. Yet, there are acres and acres of unusable barren land in Mexico that could be generating clean energy from the sun.

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Here is a breakdown of what oil is used for in the U.S.  I would expect Mexico to be similar with more used for power generation and less used for transport.

https://www.eia.gov/energyexplained/oil-and-petroleum-products/use-of-oil.php

Solar and wind are great when the sun shines and the wind blows.  We are 100 percent solar here due to the very unique conditions of this area that make it very cost effective.  Much of the world's population is not so blessed with our abundant, consistent and strong sunshine.

I personally believe the path to replace liquid fuels is to use solar and wind to produce hydrogen based fuels which can then be transported and used in things like cars and airplanes.  I seriously doubt there are solar cars or planes in our future and current electric cars don't look so hot when the total environmental cost is considered.  There is a ceiling on their range and performance imposed by the limitations of the batteries and no break through on the horizon there. 

OTOH fuel cells using hydrogen based fuels are here now and proven technology.

Ferret is right, Mexico could become the Arabs of solar.

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Any option to move away from fossil fuels is a good one. But it's gotta start sooner rather than later.

I read somewhere that the earth has stopped "shaking" because of the coronavirus shutdowns. The animals are happy, the pollution is clearing from both the water and the air. Will we listen and make better choices? Or are we just in it for the money.

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17 minutes ago, Ferret said:

What does my computer have to do with weaning yourself off oil. Unless you are referring to the fact that it's made out of plastic? I don't care what the chassis is made of... could be iron for all I care. How about driving economical vehicles and not gas guzzling behemoths ? Even a hybrid is a step in the right direction. It's about going forward not backward to protect the oil industry.

 

There is more than plastics that require the production of oil. What say you to every form of transport including getting food to you by fuel guzzling trucks planes and ships,etc.. Do you feel capable of providing for yourself then,because that is what you are suggesting with your[ahem!] weaning?.Reality is not looking at a couple of trees,to get it one must be looking at the entire forest-eh!

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1 hour ago, Mainecoons said:

Here is a breakdown of what oil is used for in the U.S.  I would expect Mexico to be similar with more used for power generation and less used for transport.

https://www.eia.gov/energyexplained/oil-and-petroleum-products/use-of-oil.php

Solar and wind are great when the sun shines and the wind blows.  We are 100 percent solar here due to the very unique conditions of this area that make it very cost effective.  Much of the world's population is not so blessed with our abundant, consistent and strong sunshine.

I personally believe the path to replace liquid fuels is to use solar and wind to produce hydrogen based fuels which can then be transported and used in things like cars and airplanes.  I seriously doubt there are solar cars or planes in our future and current electric cars don't look so hot when the total environmental cost is considered.  There is a ceiling on their range and performance imposed by the limitations of the batteries and no break through on the horizon there. 

OTOH fuel cells using hydrogen based fuels are here now and proven technology.

Ferret is right, Mexico could become the Arabs of solar.

Nope there are large areas of the northern hemisphere populated by people that are not conducive to the use of solar. Wind generation kills off birds and bats but I guess we don't really need those.

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No comment on the hydrogen based fuels? I know very little about them. I can tell you about people who have solar... totally off grid in the middle of a forest in Canada. Even if it's not 100% at certain times of the year, it still ends up as using less fossil fuels. Isn't that a plus? A lot of electrical energy is produced by water turbines in Canada as well. Or tides... or?

 

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