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By (user no longer on site) OP
over a year ago
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Does anyone know how much oil storage capacity the UK has got?
US crude prices turned negative yesterday....like they will pay us to take it away.... if we have storage capacity should we be "filling our boots".....? |
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By (user no longer on site)
over a year ago
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"Does anyone know how much oil storage capacity the UK has got?
US crude prices turned negative yesterday....like they will pay us to take it away.... if we have storage capacity should we be "filling our boots".....?"
They’ve bounced back already  |
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By (user no longer on site) OP
over a year ago
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"Does anyone know how much oil storage capacity the UK has got?
US crude prices turned negative yesterday....like they will pay us to take it away.... if we have storage capacity should we be "filling our boots".....?
They’ve bounced back already "
Yesterdays low was -$37.63
Bounced back this morning to just above zero. +$2.54
1 hour ago trading @ -$4.29/barrel...gone negative again and going down.... |
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By (user no longer on site) OP
over a year ago
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The reason it went negative is the US storage is already full!
Brent Crude is a benchmark price....but oil is traded on world markets...anyone could buy from anywhere.... |
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By *oAnCouple
over a year ago
Wandsworth |
"Does anyone know how much oil storage capacity the UK has got?
US crude prices turned negative yesterday....like they will pay us to take it away.... if we have storage capacity should we be "filling our boots".....?"
June future contracts went negative and only for WTI which is a light sweet oil. The spot price is still just under $20 as I write this.
Storage is a problem with ships not sailing, cars not driving, planes not flying.
So WTI (West Texas Intermediate) is an oil usually taken up by fracking, a by-product is gas which at the moment is trading at $1.60 which is free for the crackers so although you will see huge numbers of bankruptcies (and oil is one of your big job creatotors) Also the refineries in the US are built to take in and refine light sweet and would cost billions for each plant to convert to a heavy crude like Brent or Saudi oil.
Interesting times - hope there is a way out of this corona virus thing as it has affected us all.
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By (user no longer on site)
over a year ago
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My only prediction is that the world leading fab epidemiologists (who happen to be furloughed when needed most) will now morph into world leading experts in oil production and oil markets.  |
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It was only the May contracts which are due to expire (meaning that the oil must be taken or the contract rolled over) which briefly went negative.
The US still has storage but is expected to be full in 2/3 weeks.
Global demand for oil is around 30% down on normal levels. |
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By *arksxMan
over a year ago
Leicester / London |
Oil purchase prices didn't go negative
May wti future contracts turned negative. (that's American fracking oil)
No commercial entity at any point was selling oil at a negative price.
I have seen this narrative twisted by mainstream reporting who don't understand the financial situation.
These May contracts are due to expire at the end of this month and the speculation in price has come from paper traders.
Lets simplify and call it banks and trading firms.
They don't have anywhere to store the physical contract they have been trading and that is due for delivery at the end of the month.
A mass sell off caused the price to (tank)
Worldwide storage of oil was already tapped up months ago at the start of the Saudi Russian oil war.
The usual facilities are port oil bunkers Singapore at Rotterdam have large facilities.
China already grabbed up barrels of the stuff at the first round of sell offs
I would include airports but obviously no one is buying jet fuel right now... And you start to see the supply and demand problem.
Next up is vlc (ocean oil tankers) oil is transfered to these and the act as floating storage tanks just outside of port.
Corona virus or not, 2020 oil reserves across the world where up and demand down.
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"My only prediction is that the world leading fab epidemiologists (who happen to be furloughed when needed most) will now morph into world leading experts in oil production and oil markets. "
FFS give us a break.
WTF are we supposed to do on groundhog day?  |
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By *exfordMan
over a year ago
discombobulated land |
"Does anyone know how much oil storage capacity the UK has got?
US crude prices turned negative yesterday....like they will pay us to take it away.... if we have storage capacity should we be "filling our boots".....?"
I've got 3.5 litres Inn the garage I think. Not sure about next door, I think he's got loads but he's just not letting on. |
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By (user no longer on site) OP
over a year ago
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"Does anyone know how much oil storage capacity the UK has got?
US crude prices turned negative yesterday....like they will pay us to take it away.... if we have storage capacity should we be "filling our boots".....?
I've got 3.5 litres Inn the garage I think. Not sure about next door, I think he's got loads but he's just not letting on."
You need more boots to store it in then... |
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Global oil storage capacity is almost full and yet we're still planning on producing more of what we know is a highly damaging product for global well-being. Our energy use has been responsible for much of the global heating and pollution that we have.
With intelligent leaders, we'd be looking to come out of the Covid-19 challenge and impact on the economy, by drastic development of our alternatives that aren't so damaging to life. Huge amounts of employment, manufacturing and investment potential could be sourced via greener solutions to our lives. |
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