Oil plummeting over 40%. Get ready for sub $1 gas (except in CA).
Will be nice at the pump, but this is a very, very bad thing.
A cup of Starbucks is more expensive than a barrel of oil.
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So, the May 2020 contract is down $6 to $12. But, the Dec 20 contract is down only $0.50 to $33.
There is too much supply for the storage capacity at the moment. But the market does not expect that to continue indefinitely. It's a situation called contango. If you could rent an old tanker and sit it in the gulf for a few months you could bank some serious coin.
1) Buy cheap spot oil
2) sell expensive forward oil
3) ...
4) profit!
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Arbitrage good, speculation bad.
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What I wouldn't give to have a bunch of empty storage facilities right now.
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could you share?
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an eventual recovery. Supply and demand at work.
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Link: https://www.marketwatch.com/story/us-oils-may-contract-skids-about-20-at-nadir-as-crudes-woes-continue-2020-04-19?mod=mw_latestnews