Yep…
Anyone planning on buying once the knife stops falling?
If so, how do you do so? ETF? Direct? What’s your plan to capitalize on this?
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No storage available and contracts stipulate delivery to storage. “Landlocked” oil is fucked. 36 million barrel/day drop in demand and OPEC+Russia+Texas could only agree to cut 9million.
June futures are at $22, but that is another, what, 750 million barrels of excess that needs to find a place to sit?
Oil producers are fuxked. Big time. Countries that rely on oil a majority of their economic output and income will burn through their foreign reserve savings and collapse if this goes on into the fall, and demand sure won’t go back to “normal” by then but may be able to get near break even with production cuts and some of the old demand coming back…but at $20 a barrel it’s delaying the inevitable. Most countries need 3 to 7 times that to break even in their national budgets.
Russia, Saudi, US all will be OK after even a few years. Not many other producers will be able to handlea 10-15 months of this and banks will be in trouble themselves, and surely not accepting broken down refinery infrastructure and a commodity that can go negative as collateral.
Crushed economies means people in the streets. Allen Dulles in Hell must look like Montgomery Burns, twiddling his fingers…“Exxxcellent…”
John Bolton’s moustache has a full erection I am betting as well…
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Technical trading explanation
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Venezuela was fucked before this, now hopefully the regime falls.
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The Canadian dollar tracks closely to the price of oil. Good time to invest in Canadian real estate with greenbacks. Great for Michiganders who might like to buy a cottage up north. Bad for US tourism, Canadians are the biggest contributors to that industry. Going to be real tough sledding in that market as Canucks stay home, long after the virus impact fades.