Gas has to cost $3 a gallon before it affects vehicle choice, study says

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WetEV said:
Oilpan4 said:
Difficult to refine sulfur filled crud that no one wants may be $5 per barrel.
WTI was below $15 ($14.77) just a bit ago. Lowest price this century.

The heavy "sulfur filled crud" usually sells at about a $15 discount to WTI.

On the other hand, skies are blue, even in places that hasn't happened in decades.

Recently WTI below $11/BBL. A lot of lower grades will likely be below $0/BBL.

A whole lot of oil wells are going to get plugged with concrete.
 
From joke to reality, in a matter of hours:

https://www.nytimes.com/2020/04/20/...odule=Spotlight&pgtype=Homepage#link-180009fd

Oil plummets as storage capacity runs low, and a quirk in pricing wipes out one benchmark.

Oil prices tumbled on Monday as the economic crisis set off by the pandemic continued to destroy demand for energy and as concerns grew that storage tanks in the United States were near capacity and unable to hold all the unused crude.

Oil that is scheduled to be delivered in June fell 12 percent Monday to about $22 a barrel, but at the same time a benchmark to be delivered next month was essentially deemed worthless. Owing largely to a quirk in the way that oil prices are set, the May benchmark actually fell into negative territory, suggesting people who had oil to sell were willing to pay to have it taken off their hands.

The problem is that the United States is running out of places to store its oil, which is already being stockpiled on barges at sea and in any nook and cranny companies can find in their facilities. Traders are now worrying that even this space is running out. Under futures contracts, West Texas Intermediate — the American benchmark for oil prices — is delivered to Cushing, Okla., but investors are worried that there will be no place there to put it.
 
BTW, oil pricing was apparently a portend of the market crash in 2008.

I don't know much about that, but I can tell you that the shock crashes in both 2008 and 1929 were followed by a short, sustained rebound that didn't last. In 2008 it lasted no time at all and in 1929 it lasted about 5 months.

I personally suspect a world more hurt for peoples' 401Ks is imminent. Not mine, because I'm 100% cash already, and have been since November of last year.
 
^I'm with you on this one. It beggars belief IMHO that oil can drop like this without causing a market panic. I guess FOMO is still in place but eventually even that may evaporate. If/when it does, it will be quick.
 
I have begun construction of a 500 gallon diesel tank to take advantage of these interesting times. It's just an old propane tank with a broken valve tree I got from the local agg auction for $80, still needs a containment pad and 2 inch NPT bung welded on the top of the tank and a 1/2 inch NPT water drain on the bottom.
At these prices I'm pretty much just paying the cost of refining and shipping. I'm filling it with non road taxed so won't even be paying tax on it.

I will probably set an all time weight record for leaf towing when I go buy the concrete.
I will also be recycling all the concrete and ceramic tile waste I have collected since late 2017.
 
Seems like the ideal time to put some rapidly devaluing cash into shorting overvalued EV companies. What do I know, though...
 
The US dollar index is up and doing well, it was at a 4 year high with in the last few weeks.
The last time it was before 2016 it was this high was nearly 20 years ago.
 
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