/biz/ - Business & Finance

>>50379867
>>50379896
lol, imagine being a nerd that needs graphs to legitimize his baby-nuts trades

>open interest down from yesterday
>open interest still eeeuuuuje
>volume smol
I will stay smug as fuck until the bell.

>>18573574
>So basically this means people were vastly overestimating demand for oil in May, correct?
Kind of, Anons are very much overreacting.

All this means is that we have oversupply. That's literally it. Any moron watching oil for the past few months could see this was going to happen at some point, it has happened multiple times in the past. When you have sufficiently sustained oversupply, eventually it stops being economical to process and sell the product - in this case oil. Oil also has a bit of a unique facet - you can't just turn off the supply.

So how do you induce somebody to take the oil off of your hands when you no longer wish to do anything with it? You lower the price DRASTICALLY so traders can make a profit speculating on the rebound. The price has to dip low enough that it makes sense for the traders to foot the bill for transport ans storage. That's currently where we are.

This will continue for a while until demand rebounds and/or enough producers go out of business that demand and supply again reach a reasonable equilibrium again. The reason big cap oil companies aren't going down is because the well managed ones have the cash to survive the contango, and everybody knows it.

If you're looking for high-risk high-reward, look to smaller cap shale companies that may or may not survive. You pick the right horse and it'll do gangbusters, but that's too risky for my tastes. There's no way to know who is going to come out of this on top, other than the supermajors which are as near a sure thing as you can possibly get.

Does anyone else put a paper towel in their asscrack to soak up buttsweat while they trade?