441–450 of 546 posts
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>you can only take Lyft/Uber and it costs $100 each way to get to the store Hard to follow this analogy
The part about depending on only semi-reliable third parties for your logistics, or the part about the supply chain costs being 1000x your material cost?
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My grandfather in Colorado did the opposite once in the 1970s. He needed some cattle, so he bought a small quantity of cattle futures of some form (I was too young when I heard the story to remember the details) from a broker/commodity trader in Chicago. When the contract approached the settlement date, the broker called to ask him to sell. Trouble was, my grandfather just wanted cows, not cash. The broker was frustr…
I don't know. Somebody has to take delivery of the cattle, so why not the guy who wants some cattle?
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From the memo that generated the news story you linked: > IV. Accidental Releases Nothing in this temporary policy relieves any entity from the responsibility to prevent, respond to, or report accidental releases of oil, hazardous substances, hazardous chemicals, hazardous waste, and other pollutants, as required by federal law, or should be read as a willingness to exercise enforcement discretion in the wake of such…
If one wished to be nit-picky, one might note that the part you quote is explicitly about "accidental" releases, so arguably does not apply to the deliberate release that the originator of this thread branch was talking about. :-)
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Also full. The proportion of the global tanker fleet that is just full of oil sitting off coast near refineries is at an all time high. A lot of speculators were betting that oil prices were going to go up and had rented ships and filled them with oil they though was cheap, before COVID-19 even hit. Since then, oil prices have absolutely cratered.
How do these tanker contracts work? Are speculators leasing the tankers on a month to month basis? What happens when/if the tanker isn't offloaded at the end of a contract?
It’s a pretty efficient market
See this article (Suspect rates have climbed even further as the storage trade becomes more lucrative.
https://www.forbes.com/sites/gauravsharma/2020/03/12/superta...
If it's in our best interest to keep US oil companies alive (I understand that it is), wouldn't this be an effective way to accomplish this goal, with the side benefit of receiving additional tax revenue?
Earlier quoted context omitted.
The part about depending on only semi-reliable third parties for your logistics, or the part about the supply chain costs being 1000x your material cost?
The part where a trip to the grocery store costs $100
Completely naive question, but I'm curious: all of the negatively priced oil is coming from Saudi Arabia and Russia. What keeps the US from applying large tariffs to oil imports from those countries (or on all imports)? If it's in our best interest to keep US oil companies alive (I understand that it is), wouldn't this be an effective way to accomplish this goal, with the side benefit of receiving additional tax reve…
Completely naive question, but I'm curious: all of the negatively priced oil is coming from Saudi Arabia and Russia. What keeps the US from applying large tariffs to oil imports from those countries (or on all imports)? If it's in our best interest to keep US oil companies alive (I understand that it is), wouldn't this be an effective way to accomplish this goal, with the side benefit of receiving additional tax reve…
Oil companies may benefit from keeping oil expensive, but other parts of the economy that depend on oil do not. For them, tariffs are an extra tax on them and ultimately consumers.
Earlier quoted context omitted.
> What I don't understand is why the sudden move today? Did the longs think they had a place to put the oil on Friday but found out over the weekend they had no place to put it? Just seems like you would know what to do with the oil on Friday. Note this is not a rhetorical question, I would sincerely like an answer. Guys like myself, an ex fund manager, could be tourists in the oil market. I know I was, speculating o…
A really risky (but I think worth the risk) bet is to buy the front and sell the back. You will receive a huge credit, and as long as you close out the back leg below what you sold for, you’re in the clear.
Completely naive question, but I'm curious: all of the negatively priced oil is coming from Saudi Arabia and Russia. What keeps the US from applying large tariffs to oil imports from those countries (or on all imports)? If it's in our best interest to keep US oil companies alive (I understand that it is), wouldn't this be an effective way to accomplish this goal, with the side benefit of receiving additional tax reve…
Oil companies may benefit from keeping oil expensive, but other parts of the economy that depend on oil do not. For them, tariffs are an extra tax on them and ultimately consumers.