Oil plummets to 17-year low as broken market drowns in crude

[Yo_Mama_Been_Loggin]

Oil tumbled to a 17-year low as coronavirus lockdowns cascaded through the world’s largest economies, leaving the market overwhelmed by cratering demand and a ballooning surplus.

Futures in London fell as much as 9.4% to the lowest since November 2002, while New York crude briefly dipped below $20 a barrel. The huge oversupply is further collapsing the oil market’s structure, and there may be more weakness to come as the world quickly runs out of storage capacity. The slump in demand has shut refineries from South Africa to Canada.

Prices are on track for the worst quarter on record. Goldman Sachs Group Inc. estimates consumption will drop by 26 million barrels a day this week as measures to contain the coronavirus hurt global GDP. Meanwhile, Riyadh and Moscow are showing no signs of a detente in their supply battle as Saudi Arabia announced plans to increase its oil exports in the coming months.

“Market participants and oil producers are now shaken to the bone over what is playing out in the oil market,” said Bjarne Schieldrop, chief commodities analyst at SEB AB. “The world cannot store the current surplus.”

https://www.msn.com/en-us/money/markets/oil-plummets-to-17-year-low-as-broken-market-drowns-in-crude/ar-BB11SFhy?li=BBnbfcN

[ret5hd]

1. The world cannot store the current surplus."

Yes it can...leave it in the ground, you f’ing idiots.

[netrace]

2. That response is beautiful.

[customerserviceguy]

6. It doesn't work that way with shale oil

You pump steam into the ground, which liquefies the oil, then collect it from another hole in the ground. It needs to stay hot to keep producing. Once you let it cool back down, it becomes impossible to get any more out of the ground with present technology.

I read that about a week or two ago, sorry I don't remember where.

[ret5hd]

7. Well, too bad then. "I Cry For You, Exxon"...

is my latest ear worm.

[customerserviceguy]

8. Faced with a choice

of getting something for oil that can still be pumped out (at minimum, the variable costs of producing it) and zero income ever for that oil, which path will a well owner take? That will further depress the market for crude.

[ret5hd]

9. Reminds me of some comedy skit I saw years ago:

“How do we make money selling below cost? Volume Volume Volume!!!”

[kacekwl]

3. It figures, gas under 2.00 a gal

and I can't use it. Not going anywhere neither is the gas in my tank. Overall it's a good thing way less vehicles on the road.

[ProfessorGAC]

4. Took Wife To Dr Today

Circle K at north edge of larger city to our south had it for $1.549 with my saver card.
My wife had 7/8ths of a tank. No point in stopping.
I bought gas there 4 days ago for 10¢ more.

[empedocles]

5. Serious and dangerous deflation

[KY_EnviroGuy]

10. And planet earth said aaaaahhhhhh.

..........

[The_jackalope]

11. +1000

I've been saying for the last 15 years that the only serious way to remediate the biosphere is to reduce economic activity, and its associated fuel-driven carbon emissions, as close to zero as possible.

I sure didn't want a pandemic to do it, but I always knew that was the only event that had the heavy lifting power to accomplish it.