/biz/ - Business & Finance

What a ridicolous headline
for oil to fall below zero theyd have to give it away for free
Dont believe the lamestream media

I will bruhm I will.

>>17925354
what the fuck does that mean lmao

>>17925458
reverse market purchase? we get paid? what

>>17925458
buy signal

>>17925354
my newsfu looks distressed

>>17925402
Storing oil barrels is expensive.
It's far-fetched, but not impossible.

>>17925402
Oil has a shelf life of 40 days in a barrel retard

Holy shit seriously? Fuck fuck I better sell all my oil shares at a loss and drive the price down even further for shaden sheckelamp's hedge fund to buy.

>>17925402
ya, just like negative interest rate bonds

>>17925500
the funny this is oil has lost 20% since that picture was taken

>oil will never, ever recover

>>17925354
something that has utility value doesn't go to zero fuck nut

>>17925642
Literally what happened to whale oil

>>17925354
I get my news from cnn

>>17925402
>for oil to fall below zero theyd have to give it away for free
no, they'd just destroy it.

>>17925354
oh no, not those poor sweet russians and sand niggerinos nooooooooooooooooo

>>17925701
Haha. Why not just leave it in the ground?

How can oil price go below zero if oil isn't real?
Like close yo oil well nigga.

>>17925743
If the cost of extraction is higher than the revenue from selling the oil, then yes, wells would shut down. That is already happening with shale.

>>17925795
plus theyll keep the well open if the cost of closing and reopening is higher than just waiting it out

oil falling below zero means that they have to give it away for free, AND if they don't it will cost them money to destroy it, AND the amount that they could pay a buyer to take it away is less than the price of destroying it. unlikely, but possible

>>17925563
where did you get this info?

>>17925853
To be honest I don't think Saudi Arabia could go that low, oil is still a yuuuge part of their revenue
pricing out competitors is great but not worth collapsing your own economy

>>17925847
Why not pump it out and directly back into another hole in the ground?

>>17925891
>collapsing your own economy
That's the new hotness this year.

Corona virus is fake news

>>17925680
Git replaced by electricity and other sources of oil. It wasn't "oh shit lol no need for this anymore" but rather "oh shit that nigga made the shit in the sky on a cloudy day light up his house get me in on this shit bruh"

>below zero
what?

>>17925955
Checked

But why corona in the only non corona thread on /biz/?

>>17925402
It means the asset is more costly to hold onto than to just get rid of. Oil has to be stored, shipped, checked for quality, have additives put into it, etc. That all costs money, but if the value of oil drops too low, it would be more expensive to produce and store oil than it would be to just not do it at all.

>>17925354
Stupid headline. Oil isn't going anywhere. This is a concerted effort by the Russians and Saudis to attack America at it's weakest, but it's literally a double edged sword and they're only hoping we break first.

>oil goes up
>gas prices skyrocket
>oil plummets
>gas prices barely move
Why are kikes like this?

>>17926036
>This is a concerted effort by the Russians
are you retarded?
our economy is shitting the bed rn cause only thing we produce is oil and gas

>>17926062
Literally the rest of the sentence:
>but it's literally a double edged sword and they're only hoping we break first.

>>17925354
>below zero
What...

>>17925996
Who do you think killed all the oil. Hello?

>>17926050
Because they know your bitch ass needs it to get to work so they gouge you at the consumer level.

>>17926084
Nobody is hoping for shit, saudis just dump and laugh at everyone, Russia is getting spitroasted by usd from one side and by oil price from the other.

>>17926111
Did you nasty-ass girlfriend absorb it into her gross, shiny-ass skin?

>>17925543
Oil isn't stored in barrels.

>>17925563
Crude was literally in the group for millions of years bro. Some refined fuel has a shelf life... Of years. Most is storable for decades. Crude can sit around forever.

>>17926119
Russia and USA should unironically team up and nuke Saudi Arabia.

>>17926092
As near as I can figure, from the wizard scientists itt, less than zero is retarded main stream media speak for below cost.

No surprise that liberal journalism trannies have absolutely no business vocabulary desu.

>>17926111
Close, but distribution of such scale is 10-15 years out. It's going to happen, just not today. This is manufactured. Heh, get it?

>>17926119
We should be allies against the Muslims. I have no idea why there's such superfluous divisions when it's eminently clear that we have more to lose fighting each other than uniting.

>>17926062
E-thots will save our economy

>>17925613
This is actually true, JP Morgan Chase had a leak talking about how they are stopping all investment in Oil permanently.
https://youtu.be/_H2v7kTVPIE

>>17925743
Sensible kek, anon. Breddy gud.

>>17926149
>>17926166
b-but i have a brown boihole living in SA who wants my d
>>17926175
e-thots bubble is over

>>17925458

oil barrels need to be stored, that costs money.
so theoretically companies could be in a situation where they are paying tons of money to store oil nobody wants. they will then have to pay someone to take it off their hands.
some genius here said they will just destroy it. how? blow it up? dump it in the ocean? that ain't happening. destroying it would also cost a lot of money

>>17926050
It’s dropped 50 cents where I live. I just filled up for $1.84. Feels goodman

>>17926185
Stupid kike, bait the public into believing muh global warming so oil can tank to insane lows then they buy it all up. Not me fuckers, ill be riding that wave with you jews, I see through your smoke and past your mirrors.

>>17926222
Gas just went below $1.60 where I live.
And this is while several major oil producing nations are effectively banned from exporting.
I expect sub-dollar gasoline for decades at this point.

>>17926248
The first world reducing oil consumption on a retail level isn't going to do shit to oil, manufacturing needs it, and the entire developing world is only going to increasingly depend on oil. Oil is not going anywhere.

>>17926248
Since fracking, the only thing that's kept us from $1 gasoline is the OPEC+ alliance turning the spigots way down. You're delusional.

>>17926296
Fracking is extremely costly, that alone makes your retarded theory bunk.

>>17926276
>and the entire developing world is only going to increasingly depend on oil.
The entire developing world is going to be flooded with cheap Chinese electric hatchbacks.
And electric semi trucks, and eventually electric "everything with wheels".

>>17926322
Everything is costly in the infancy of the industry.
This shit gets cheaper and cheaper and cheaper to do every single month. It was already cheap enough to be viable around $40 a barrel, and now they have the impetus to put more money into refining the process.

I remember when Wind farms were a boondoggle that couldn't really pay for themselves, now my State and the one above me are planting them like madmen, because it's practically the cheapest way to produce energy.

>>17926326
how are those gonna get powered? by magic? you do realise you have to charge those, right?

This is good news for bitcoin faggots though right? Fixes the double halvening (price and difficulty) by basically paying mining ops to produce them.

Yay pretend money!

I'm getting super black pilled and every new piece of bad news is making me giggle. This happening to anyone else?

This doesn't make the syrian oilduct bypass look like a sane proposition. I wonder if (((they))) have already given up on it. The project predates 2011, that civil war doesn't seem to have an end in sight, the ROI on that thing is probably already going way past the best case scenarios for peak oil. Putin is masterfully playing 4d chess, he can't end that conflict but he can clearly make it absolutely pointless in the short term. While taking arabs down a notch with the same fucking stone.

>>17926374
I mean, do you EVER read technology journals or even industry rags like Bloomberg?
Or do you only accept info from credible sources like Laura Ingram?

Below zero (beloozero) is a place in Russia. You all got memed.

>>17926372
Fracking is absolutely never going to be able to compete with traditional drilling. Shale will end up like Oil Sands crude - way too costly to be profitable long-term. We've literally seen this shit happen before, all it takes is some turbulence and these barely profitable industries crumble to dust while big, traditional oil producers continue to survive.

>>17926326
And the world was cooling in the 70's, and we were close to running out of oil in the 90's, and cars would be fully self autonomous by 2022, etc. Oil has already suffered because of the massive brigade of green propaganda, it will continue to suffer this market crash, but it will rebound.

>>17926296

What? The saudis have literally upped production like hell to try and bankrupt american fracking and the russians.

>>17926444
Russia's permafrost is melting away. It's 27F in Siberia right now.

>>17926464
>What? The saudis have literally upped production like hell to try and bankrupt american fracking and the russians.
Yes, that's NOW. They had been turning down production for the entirety of 2019, while American gasoline prices were still dropping.

>>17926529
>The saudis have literally upped production like hell to try and bankrupt american fracking
Kinda ironic given that Trump has thousands of troops stationed to protect their oil fields right now.

>>17926552

Be even more ironic if an accident were to happen.

>>17926552
That's why this whole thing is so insane. The Saudis are backstabbing their only real ally.

>>17925354
All-in on GUSH. Scared money don't make money. Stay poor, faggots!

>>17926595
>$20

>>17926500
t. retard
First things first its -10C and its absolutely average temp for mid march here
Secondly its not melting at all cause the diamond mine alrosa lost to flood in 2018 is now frozen solid.
Please stop being a faggot.

>>17925891

mbs arrested at least 24 princes. the cost of a barrel of oil was high in saudi arabia was high because of them. all of them are entitled to a cut, so they can go shit on instagram models and be ringside at boxing matches. they're in jail now, so mbs is free to rape OPEC how he pleases

>>17926578
>>17926585
Trump has been forced to bank with the Germans for years now (the American banks won't touch him). The German banks have also been laundering money for the Russians and the Saudis.
Trump is personally in so deep with the Saud and Putin that he literally cannot act against their interests. Its not amazing or ironic at all.
"Accident" my ass. He tore up the Iranian agreement to please the Saud. He covered for the Embassy hit job for the Saud like he was their press agent. Now he's guarding the Saud fields while they ass-fuck us. He called the Prince a week ago to complain and the Prince responded by turning up production.

He's literally the Manchurian (Siberian?) Candidate.

>>17925354
Suterusu fixes this, especially when Asian economies recover. Imagine thinking they won't. Imagine thinking SUTER won't be the next Antshares. It's all right in front of your face. All you have to do is buy early, stake, and wait.

>>17926660
Until he gets assassinated.

>>17926620
No use arguing with these people. They think we are going to live in some Jetsons future in 20 years and run the world without shipping fuel avgas lubricants or fossil fuel power. All because their wine party hipster friend spent $50k on a glorified golf cart that can go a whopping 200 miles before you literally have to spend like an hour and a half to charge it back up.

Its completely pants on head retarded.

>>17926405
Lol. The miners will never shutoff.
When will you fucking get it through your heads?

>>17926672
Mueller would have found that stuff if it were true. He didn't. It's time to grow up.

>>17926797
yet I can go to a shithole country like Morocco and see wind power all over the place

>>17926826
That's cute.

>>17926826
I can go to a shithole country and see people driving gas guzzlers all over the place.

>>17926826
The smart countries are going nuclear.

>>17926817
Nobody is doing anything that makes sense nowadays, so I totally believe you.

>>17926738

unlikely

>>17926868
That is indeed the smart play. It'd be cool to see a nuclear powered commercial shipping fleet too.

>>17925354
>lose my job
>get Trump bux
>get paid to take a bunch of oil and dump it in the lake

Maybe the depression won't be so bad

Lots of oil companies buy contracts to sell a certain amount of oil so if the price falls below zero they are contractually obligated to pay to "sell" their oil. Of course the company would likely be bankrupt by then.

>>17926896
Are you kidding? He has a massive target on his back now, every oil interest in the world wants him dead.

>>17926868
if i'm a town and I want to have cheaper power whats more feasible, build a nuclear power plant or a wind turbine?
>>17926865
you're 100% right, until electric cars become more mainstream

I was only talking about the power grid
>>17926852
okay boomer

So is oil investing bad now?

>>17926826
I live in a shithole country called Russia. I havn't seen a single charging station this side of urals. I'll tell you even more, tesla memes won't even fucking start in this conditions cause lition batteries operating temperatures starting above 0C and its sub 0C for the 9 months in here.

>>17926925
>security doesn't exist

>>17926939
People are gonna pay you to take their oil.

Saudi might also go negative to put russia and the US out of the oil business. Better long term for them.

>>17926939
listen to your heart, not the cucks on biz.

>>17926925
Not greatest ally or the Trump admin. Wouldn't surprise me if someone tries it though. Wonder if the "Iranians" would try something again in the Strait, or try to precision strike Saudi oil refineries again. That is more likely than MBS getting a Columbian necktie

>>17926925

i'm saying that the likeliness of a successful assassination is low

>>17926947
I said shithole countries not hellhone

>>17926939
Oil will be back to at least $50/barrel EOY, this insane pricing can not last, the entire world economy would cease to exist if it did.

>>17926933
>if i'm a town and I want to have cheaper power whats more feasible, build a nuclear power plant or a wind turbine?
Neary every country has a single, unified power grid. It doesn't matter where the plant is located, it's all part of the same grid. Energy prices are determined by supply and demand as well as government subsidies / regulations.

A small town would be connected to the national grid and getting power from nuclear plants just like every other place.

Stop being retarded.

>>17926925
His nickname is the father of the bullet.

>>17926986
Nuclear hasn't been doing so great since Fukushima my dude.

>>17926947
Not only exactly what this anon is saying, but li ion batteries have an inverse economies of scale effect - they require platinum and other extremely rare minerals that do not lend themselves to scaling. Also the energy density is far, far lower than gas in a modern ev battery. I could go on, but the point is regardless of what silicon valley Kool aid drinking faggots will tell you, EV is a MASSIVE step backwards in terms of technology. There is literally no reason to use EV over gas. Literally not a single one. Especially with oil being very, very cheap.

>>17926991
Cruise missile beats bullet.

>>17926986
>A small town would be connected to the national grid and getting power from nuclear plants just like every other place.
You realize some places actually own their own power grid under the national level right?

>>17927040
Nobody is going to cruise missile the Saudis.
That's like saying someone is going to nuke Russia.

>>17927051
You realize natural gas is an order of magnitude cheaper than either nuclear or wind right faggot?

>Powers the entire world (and don't even fucking dare bring up meme garbage like wind/solar, which don't even account for a small fraction of energy consumption)

>Brings prosperity to the West

>Heats your home

>Used to power farm equipment that feeds the world

>Going to zero dollars

So basically now is the time to start going long on oil?

>>17927063
My expectations have been continuously defied for the past month, I would not even be surprised if MBS' yacht were hit with a cruise missile at this point.

>>17925721

Millions of Americans and literally 25% of Canadians work in the oil & gas industry, Kikelord.

>>17925743
Shuting it down costs money.

>>17927069
yet somehow green energy is growing without subsidies

>>17927078
Or short on everything else.

>>17927099
>I would not even be surprised if MBS' yacht were hit with a cruise missile at this point.
I would laugh if that happened, only because of the absurdity

>>17927117
Just because the subsidies aren't public doesn't mean they're not subsidies anon. Renewables (other than hydro) are by far the least energy efficient means of producing power. By far.

>>17926416
What on fucking earth are you talking about? Do you think South America is covered in windmills or something, retard?

>>17927143
I have not done enough research to refute you (and im not going to i've wasted too many hours in internet arguments in my life) but instead ill assume you are right and ill bring the point the monetary costs arn't the only costs to nonrenewables, pollution is also a societal cost. Also there's the opportunity cost of not pursuing renewable research for more effective energy too.

>>17927078
That’s what I’m doing!

>>17927078
I'd tip toe into it. It's a long way up.
But yeah, oil isn't going anywhere.

>>17926296
Jesus, you're clueless.

>>17927209
unironically yes, have you traveled around?

>>17927237
What would you invest in?

>lumber demand falls
>lumber producers just produce less lumber

>oil demand falls
>fucking retarded Saudis keep pumping at a loss for no reason

This industry is so fucking stupid.

>>17926326
>he entire developing world is going to be flooded with cheap Chinese electric hatchbacks.

Imagine being this retarded?

This literal fucking intellectual toddler thinks that electricity just spurts out of the wall socket magically and powers his exploding Gook battery car....

How embarrassing. This fucking brainlet probably doesn't even have a vague idea how much earth needs to be strip mined to extract the ores from which your faggot lithium batteries are made. Pic related is the type of equipment used in strip mining. Guess what powers this type of equipment you dumb cunt, you worthless slave.

>oil will stay at a price below what it can be manufactured at forever

this board is hopeless. USO is guaranteed money at this point. It is literally impossible for oil to stay at this price. Every company that produces it would go bankrupt. You always take investments that have a 100% chance of a positive return.

>>17927224
>Solar and wind don't have negative externalities
CO2 is not a pollutant by the way

>>17927287
I hope my GUSH and UWT stay green tomorrow morning so I can YOLO on USO. I made 40% on GUSH today and decided to hold the bag over night. Big mistake I think. We will see.

>>17927260
Idk. XOM looks juicy but they have loads of debt. HAL or SLB are oilfield service so it's hard to say how hurt they are going to be until domestic production picks back up.
There are plenty of oil ETFs that could yield a decent profit and be a bit safer in the short run.

>>17927262
demand barely changed, this is purely a price war to hurt oil producers everywhere

>>17927302
>Solar and wind don't have negative externalities
other than space and manufacturing pollution what else is there?

>CO2 is not a pollutant by the way
CO2 isn't the only by product of fossil fuels, but ill bite, why don;t you consider co2 a pollutant

>>17927250
I live in South America, dumbass. There's hydro plants, but that doesn't come close to powering Brazil. It is literally impossible for it to.

>>17927287
MBS wants companies to g bankrupt dummy
>demand barely changed,
Have you been watching the news?

>>17927099

Trump is too much of a clueless cuck of the Jews to even dare suggesting pulling US troops out of Saudi Arabia, even if they threaten millions of American jobs in the shale fields.

>>17927363
Brazil isn't the only country in SA but 11% renewables is kinda in line with the wind farms i've seen traveling around.

>>17927400
Wow a whole 11%! Wonder how the cost per kWh compares to the other 89%.

>>17927224
>pollution is also a societal cost

Crude oil extracted and refined by US and especially Canadian oil and gas industry is some of the most regulated and cleanest energy available at the price.

>>17927343
>other than space and manufacturing pollution what else is there?

Fan blades going into landfills and being non-biodegradable?

>>17927400
I hope for your sake you don't actually invest money.

>>17927400

Goddamn, you're stupid.

>>17927250
I live in Argentina and it's true that windmills and solar are growing at a fast pace. However most of those projects are meme projects, provincial governments trying to show off ("see? we care about the environment!!!").

The reality is that most energy here comes from hydro, gas and nuclear, in that order. The national government is investing heavily into nuclear and hydro. Renewables (aside from hydro) are mostly a meme and contribute little to the grid.

I don't think solar and wind are important on any SA country, even if they are currently experiencing a boom they start from a small position and I don't think they have the capacity to provide enough energy.

>>17927400

>Brazil isn't the only country in SA but 11% renewables is kinda in line with the wind farms i've seen traveling around.

Countries without dammable hydro power generally have MUCH LESS renewable bullshit just because its horrifically inefficient and costly, and cannot compete with oil in a market environment without tremendous subsidies.

>>17926185
Yeah that's why Buffet and Icahn dipped into Oxy right.

>>17927505
>Just trashing them
Nigga chop that shit up and make boats and cars and shit out of it. Even the used, beat to shit stuff is primo fucking composite.

>>17927621

Buffet was also loading up on Canadian integrated liquids producer Suncor (SU) before the crash. I'm betting he's loading up now, because if it was attractive to him at pre-crash values, then it's SO much more attractive at these stupid prices.

>>17926149
USA has always backstabbed Russia, they don't work with USA unless they have little if anything to lose, and little to win
They have quite a lot to win by killing shale and igniting the fallen angels debt bomb

I bought GUSH Jan 2021 calls and CPE Jul/Oct 2020 calls this week. I fear July/October is way too early for oil to recover, am I wrong?

>>17927078
This picture was 100% taken in my irrelevant shithole hometown. Really weirding me out that it's on here. I'm 0.5 miles from this picture.

>>17925721
think of the leafs

>>17927934
Oil will recover. When that happens - No one knows. Could be 2 months. Could be 2 years.

>>17925354

Man peak oil faggots eternally blown the fuck out. I remember these doom profits saying society would collapse under the weight of expensive oil in early 2000s

Absolute brainlet here, how do I buy into oil? You guys mean shares of oil companies? Which ones?

>>17928897
we normally buy some barrels and then sell then at the local gas station when the prices rise

>>17928897
Just get the crude oil index fund - XLE. You can get it through any stock trading platform. Buy and hold. Guaranteed gains.

Gonna wait til ExxonMobil is literally paying me to take their oil, stock up then sell it once prices are back up. I've always wanted to be an oil baron

>>17925563
lol this better be bait

I’ve had some luck with Shell and Exxon, they are bound to jump up even more when Russia and OPEC quit being bitches

>>17929076
Yep. Both are solid buys.

>>17927078
>Powers the entire world (and don't even fucking dare bring up meme garbage like wind/solar, which don't even account for a small fraction of energy consumption)
coal nuclear and hydro are a larger portion of electricity generation in most countries, but oil is king when it comes to transportation and it would take a lot of infrastructure overhaul to make electrified rail replace what we currently do with trucks and cars

>>17925354
>in soviet russia oil pays YOU

>>17925354

There are decades where nothing happens, and weeks where decades happen.

>>17929262
Kek

>>17926983
>cheap energy is bad for the economy
It's bad for desert shithole that should never have become rich in the first place. It's good for civilised societies.

>>17925996
We all corona naow

>>17928153
Why should I care about a bunch of Chinese, Indians and French people?