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Oil plunges below zero for first time with May contract ending

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Re: Oil plunges below zero for first time with May contract ending

#51

Post by kaybe »

DuskStar wrote: post #31
yur3i__ wrote: post #26

Earlier quoted context omitted.

UAE and Saudi Arabia imo will be ok. They are trying to build themselves into big entertainment and tourism hubs with their ventures into sports and investment in tourism etc I think though they will definitely suffer they may be able to weather the storm. Kuwait and Qatar on the other hand I'm not so sure about

Saudi Arabia is trying to build tourism? From where?

Didn't they just start to issue tourist visas last year?

I have to say, from flying across in a research airplane that was not allowed to measure (so no work for the scientific crew = lots of time to move from window to window and observe) - it is a colourful country and very beautiful from above. There is black and white, and red and yellow, and the many patterns in the sand and the mountains are interesting. I didn't know they had (extinct) volcanoes either. If I wasn't a woman I might have even considered going.

Re: Oil plunges below zero for first time with May contract ending

#52

Post by jirdperson »

pjc50 wrote: post #39
DuskStar wrote: post #31

Earlier quoted context omitted.

Saudi Arabia is trying to build tourism? From where?

Dubai is definitely a tourist destination for a small number of hyper-wealthy people. The tourists get to be in the part of the bubble that serves alcohol.

That is true, however Dubai is not in Saudi Arabia. It is part of the U.A.E.

Re: Oil plunges below zero for first time with May contract ending

#53

Post by sndean »

DuskStar wrote: post #31
yur3i__ wrote: post #26

Earlier quoted context omitted.

UAE and Saudi Arabia imo will be ok. They are trying to build themselves into big entertainment and tourism hubs with their ventures into sports and investment in tourism etc I think though they will definitely suffer they may be able to weather the storm. Kuwait and Qatar on the other hand I'm not so sure about

Saudi Arabia is trying to build tourism? From where?

That was my first reaction too, comparing it to somewhere like Doha or Dubai. But maybe religious tourism? [0]

[0] https://qz.com/1684679/the-hajj-pilgrimage-to-saudi-arabias-...

Re: Oil plunges below zero for first time with May contract ending

#55

Post by NikolaeVarius »

bb611 wrote: post #30
tantalor wrote: post #15

Earlier quoted context omitted.

It's been buried for 100 million years, I don't think a few months is going to do anything.

Gasoline and other petroleum derivatives are not a stable as their underlying source. However consumer gas will last a few years with proper care and storage, the real issue will be when appropriate storage runs out.

Parent specifically noted crude

Re: Oil plunges below zero for first time with May contract ending

#56

Post by fmajid »

jdxcode wrote: post #35
fmajid wrote: post #33

Earlier quoted context omitted.

The gold bars are already in the US, as part of the Nixon-Faisal agreements. That should not be a comfort to the Saud kleptocracy, as the Shah of Iran discovered.

technically wasn't the ayatollah that had to pay that price? You're talking about https://en.wikipedia.org/wiki/Iranian_frozen_assets right?

Yes. He thought he’d be able to live his exile in luxury, but what he thought of as his assets (really belonging to the Iranian people he looted, of course) were frozen by Carter.

Re: Oil plunges below zero for first time with May contract ending

#57

Post by ptero »

harikb wrote: post #24
bob33212 wrote: post #20

What happens when Saudi Arabia collapses? Does the royalty get the fuck out of town on their private jets with as many gold bars as they can carry?

Dictators/Kings can survive on a very tight budget btw. It takes a long long time for those structures to crack. The only reason they would leave town would be something related to the virus (like other western rich folks are doing now)

Survive in a small enclave in a third country with a small group of servants, sure. Survive as dictators, I am not so sure -- it requires keeping troops and those in key positions happy, which is expensive. My 2c

Re: Oil plunges below zero for first time with May contract ending

#58

Post by protomyth »

bob33212 wrote: post #20

What happens when Saudi Arabia collapses? Does the royalty get the fuck out of town on their private jets with as many gold bars as they can carry?

Well, Saudi started this mess when they decided to declare economic war on Russia and take out oil production in North America as a nice bonus. As long as Saudi can pay the people in Saudi they should be able to weather the storm they started. The huge demand drop for oil just makes it quite a bit nastier.

Re: Oil plunges below zero for first time with May contract ending

#59

Post by throwaway_USD »

Usually by the time you see commodities activity hitting the front page of HN the bets are in and the market is about to take a wild swing in the other direction.

It is very easy to side with the news on oil right now that there is a historical over supply (so much so we have no place to store it any longer, and even considering paying producers to leave it in the ground) and we have a historical drop in demand...so any guesses on what the "news" will be to push oil prices wildly upwards?

Re: Oil plunges below zero for first time with May contract ending

#60

Post by ccozan »

exothermic wrote: post #12
discordance wrote: post #8

Earlier quoted context omitted.

Oil tankers are being used for storage: https://amp.theguardian.com/business/2020/apr/19/supertanker...

Floating storage levels for crude are already double what they were a week ago [0] [0] https://uk.reuters.com/article/us-global-oil-tankers-storage...

and the prices of storage as well.[1] ( Article quite old, but argument stays )

[1] https://www.reuters.com/article/us-global-oil-shipping/oil-t...

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