Please wait...
HomeForumMembers LoungeGeneral TalkOil at 0.00 ? ...tasman1
Topic Rating:

Jump to
Members LoungeYour StatsSuccess StoriesPayment ProofsMember IntroductionGeneral TalkForo en EspañolCharla GeneralSoporte General y PagosInternationalPortugueseItalianFrenchGermanHindiUrduFilipinoIndonesianArabicRomanianTurkishRussianBulgarianHungarianPolishEx-Yugoslavia
Oil at 0.00 ? ...tasman1

Locked

#1 by tasman1 » Sat Mar 21, 2020 20:40

First .............. First petrol in Tasmania is 1.50 ......... very sick price but it is normal considering how normal Tasmania is


Various reports hit the news feeds today quoting a deliberately headline-grabbing statement by Paul Sankey, managing director at Mizuho Securities, in which he is reported as saying, Oil prices can go negative.

That is, they could as a combination of Saudi Arabia (and Russia) flooding the market with increased oil and the market running headlong into COVID-19-induced curtailment of activity that is suppressing consumption, which combined will create the perfect storm of excess supply.

In reality, inventory levels are already rising.

CNN quotes Sankey, who said global oil demand is only around 100 million barrels per day.

However, the economic fallout from the coronavirus pandemic could crash demand by up to 20 percent.

This would create a 20 million barrel-per-day surplus of oil in the market that would rapidly exceed storage capacity, forcing oil producers to pay customers to buy the commodity – hence, in effect, negative oil prices.

The American government plans to purchase a total of 77 million barrels of oil starting within weeks the article states, but according to Sankey, this can only be done at a rate of 2 million barrels per day, leaving a massive excess that will be looking for a home.

Brent oil prices have already fallen to the lowest level for 17 years. The consequences for the U.S. oil industry if a coronavirus-induced recession drives down demand could be catastrophic.


Oil , negative price ? yes , possible
tasman1
Posts16,014
Member Since5 May 2012
Last VisitToday
Likes Given14,483
Likes Received15,852/8,251

#2 by suraraj » Sat Mar 21, 2020 21:48

May we will be given free Petrol and Diesel. But if Covid19 continues then who will buy that?
Last edited by suraraj » Sun Mar 22, 2020 11:41 » edited 1 time in total
suraraj
Posts970
Member Since24 Nov 2017
Last VisitToday
Likes Given211
Likes Received815/544

#3 by Arvind9 » Sun Mar 22, 2020 02:15

On the Contrary the Indian government has increased exercise duty on crude oil by Rs 3 per liter making petrol more expensive not cheaper
Arvind9
Posts4,712
Member Since16 Jun 2013
Last VisitToday
Likes Given3,864
Likes Received2,884/2,104

#4 by Darkstar2 » Sun Mar 22, 2020 09:50

@Tasman1: Negative oil prices, interesting, so this means that not only will it be free, but you will get paid to refill :P

Imagine going to the pump and refilling, and they pay you instead of you paying them :mrgreen:
Darkstar2
Posts17,058
Member Since2 Oct 2011
Last VisitYesterday
Likes Given6,197
Likes Received12,370/6,595

#5 by valerie » Sun Mar 22, 2020 11:37

I envisioned everyone driving around in circles.
valerie
Posts21,894
Member Since27 Feb 2007
Last VisitYesterday
Likes Given5,379
Likes Received19,614/8,275

#6 by tasman1 » Sun Mar 22, 2020 13:55

Darkstar2 wrote: @Tasman1: Negative oil prices, interesting, so this means that not only will it be free, but you will get paid to refill :P

Imagine going to the pump and refilling, and they pay you instead of you paying them :mrgreen:





Nope , it will not be like you say but it will work same as negative interests in today world
tasman1
Posts16,014
Member Since5 May 2012
Last VisitToday
Likes Given14,483
Likes Received15,852/8,251
Return to 'General Talk' Forum     Return to the forums index
All times displayed are PST - Server Time: Nov 27, 2021 00:55:36 PST