Serious question: how do I invest in some of those $10 barrels of oil? It seems like a contract to deliver oil at $10 in 2021 is likely to be worth more than by next year.
buy a semi trailer for gas and fill it now, sell it in 2021.
The global oil market is broken, drowning in crude nobody needs
61–70 of 303 posts
Re: The global oil market is broken, drowning in crude nobody needs
#62Earlier quoted context omitted.
The 'oil price war' was 3 weeks ago. Things are changing fast these days.
It’s not like that’s suddenly over now. But on top of that, demand is even lower, because fewer people are flying and driving around.
Here's a good breakdown of crude oil usage I found interesting:
https://www.eia.gov/energyexplained/oil-and-petroleum-produc...
Re: The global oil market is broken, drowning in crude nobody needs
#63Earlier quoted context omitted.
By paying, you leech
From the FAQ: Are paywalls ok? It's ok to post stories from sites with paywalls that have workarounds. In comments, it's ok to ask how to read an article and to help other users do so. But please don't post complaints about paywalls. Those are off topic.
He's not complaining about a paywall. He's offering a solution to get around it. The sentiment of paying for things so businesses can survive is also valid. The insult was what was unnecessary.
Re: The global oil market is broken, drowning in crude nobody needs
#64Serious question: how do I invest in some of those $10 barrels of oil? It seems like a contract to deliver oil at $10 in 2021 is likely to be worth more than by next year.
The $10 barrels are for delivery now, not next year. If you can store the oil you can earn a lot of money now. But most people can't store much oil, compared to the volumes that are being pumped out of the ground. And for many of the producers, slowing down production by more than a few per cent is also difficult — once you turn off the tap you don't really know whether the oil is going to start flowing again later.…
I know no-one here seriously thinks about buying and storing a barrel in their cave, but it’s still worth saying: Oil is surprisingly very toxic, it contains a lot of uncontrolled compounds with sulfur for example, by definition (The goal of refineries is obviously to separate those compounds).
https://www.bloomberg.com/news/articles/2015-11-03/that-time...
Re: The global oil market is broken, drowning in crude nobody needs
#65I know this is the wrong attitude but with no ties to the oil industry that I am aware of I personally am enjoying watching the market crash and my cost of gas go way down. However my understanding of the economy is poor. Does this negatively effect the average joe or mainly oil producers?
Re: The global oil market is broken, drowning in crude nobody needs
#66Serious question: how do I invest in some of those $10 barrels of oil? It seems like a contract to deliver oil at $10 in 2021 is likely to be worth more than by next year.
The $10 barrels are for delivery now, not next year. If you can store the oil you can earn a lot of money now. But most people can't store much oil, compared to the volumes that are being pumped out of the ground. And for many of the producers, slowing down production by more than a few per cent is also difficult — once you turn off the tap you don't really know whether the oil is going to start flowing again later.…
> once you turn off the tap you don't really know whether the oil is going to start flowing again later
Wait, really? I'm Googling but can't seem to find anything at all about shutting down oil wells temporarily.
What exactly is the difficulty? Why would "turning off the tap" be a risk -- the pressure oil might be under isn't going to go away, is it? (If it doesn't require pumping.) Is it a risk that materials in the drilled hole harden if not moving? I would have thought the difficulty might be how to effectively cap a well that is under pressure -- is it so difficult that closing a well risks damaging the equipment that it can't be safely opened back up?
Really curious here if you have the answers! The fact that oil wells can't be slowed down is definitely one of the most surprising economic facts I've learned in a long time.
Re: The global oil market is broken, drowning in crude nobody needs
#67Serious question: how do I invest in some of those $10 barrels of oil? It seems like a contract to deliver oil at $10 in 2021 is likely to be worth more than by next year.
The $10 barrels are for delivery now, not next year. If you can store the oil you can earn a lot of money now. But most people can't store much oil, compared to the volumes that are being pumped out of the ground. And for many of the producers, slowing down production by more than a few per cent is also difficult — once you turn off the tap you don't really know whether the oil is going to start flowing again later.…
And think is why the stock prices of companies that have a bunch of oil tankers has shot up.
Re: The global oil market is broken, drowning in crude nobody needs
#68Serious question: how do I invest in some of those $10 barrels of oil? It seems like a contract to deliver oil at $10 in 2021 is likely to be worth more than by next year.
Options Trading would be one approach. You don’t need to actually buy the commodity itself, but instead an option contract that permits you to buy the underlying ( stock, commodity ) at a particular rate by a particular date. If the price were to rise in the future, the value of the contract would be much higher than what you bought it at, and someone interested in further trading in the options contract or even buyi…
The price of those options is not cheap though because everyone else is thinking the same thing.
Re: The global oil market is broken, drowning in crude nobody needs
#69Serious question: how do I invest in some of those $10 barrels of oil? It seems like a contract to deliver oil at $10 in 2021 is likely to be worth more than by next year.
Why not just buy an OIL ETF when you think it hit the bottom.. for example https://finance.yahoo.com/quote/OIL?p=OIL
Re: The global oil market is broken, drowning in crude nobody needs
#70Serious question: how do I invest in some of those $10 barrels of oil? It seems like a contract to deliver oil at $10 in 2021 is likely to be worth more than by next year.
The $10 barrels are for delivery now, not next year. If you can store the oil you can earn a lot of money now. But most people can't store much oil, compared to the volumes that are being pumped out of the ground. And for many of the producers, slowing down production by more than a few per cent is also difficult — once you turn off the tap you don't really know whether the oil is going to start flowing again later.…
also oil storage is probably not covered by your house insurance :)