Heard that Ryan flew a plane load of (Romanians?) workers into Ireland to pick crops recently.
Cabin crew complained they felt unsafe. No distancing on the plane, no testing.
Kind of makes a mockery of lockdown......
Look at the front month if it young, but as it moves to expiry, look at M+1.
VERY important thing to look at is the spreads between months. Positive (contango) or negative (backwardation). Small or big?
That tells you a lot about the market and where it is going.
A market with a contango this steep has weak stamped all over it, but we are at very low absolute levels, so it's hard to see that much downside from here.
I think the majors are in a survival mode themselves and thinking about selling assets rather than buying.
It may well make sense for a Total or Shell to buy TLW, but in these uncertain times, it would be a brave CEO that went down that road.
Phoebus. You are looking at May WTI which is soon to expire and is therefore of little relevance.
It does show how incredibly weak the prompt physical situation is, but June is at 25+, so a bit better.
Don't forget that the huge amount of oil going into storage now has to come out sometime.
As far as the contango goes, the most likely time to start coming out is in the autumn, but this can all change of course.
I tend to agree that oil may start to move up as the political will is there.
But bear in mind that poor countries like Nigeria, Venezuela, etc. need the cash even if it is only 20$ a bbl. They will not want to reduce any more than they have to.
Try typing 'Brent Oil Futures' in Google.
It's pretty basic stuff.
% terms means nothing, it's $/bbl that counts.
WTI is under intense pressure prompt, but that spread narrows considerably as soon as you look at June/July
WTI at 17.55? Where did you get that from?
Shows what a weird market this is. Events last night have caused WTI to shoot up, but Brent is unimpressed and for the moment has barely reacted at all.
WTI cannot go up much more until Brent does or the USA will start to attract cargoes normally destined for Europe.
As the contango strengthens, so does demand for storage, and so storage costs go up.
Any spare space is like gold dust.
The report looks at crude in storage, but jet, diesel and gasoline (and even LPG) are all also in strong contango and are also being stored.
Crude tanks can take distillates (jet and diesel) no problem.
So quite possibly, some of that 'spare' space actually has diesel in it.
Market seems unimpressed, we're still a dollar off the day's highs.....
PAD, that site you are using is terrible. I cannot get any info about what Brent contract you are actually buying or selling.....?
Anyone know how much it costs to park a 737 per day at Stansted?
Brent is currently closer to lows of the day than the highs.
Not much of a 'rebound'.
The production cuts are not even happening yet.
There are VLCC's queuing up to load in the Middle East with no buyer for them as yet.
Why does everyone here get so freaked out when someone shorts a stock?
One thinks the share is underpriced and buys, the other thinks it's overpriced and sells.
So what?
Traders buy and sell all the time. Platinum, $ to euro, coffee, you name it.
Given that stock markets generally tend to rise, shorting is a far more dangerous game than going long, so there is plenty of risk involved.
OK well, good luck!
OMG, scary.
Do you understand how oil markets work?
Please don't put all your monthly salary into this.....
No.1 ? No way.
Unless you are a multi-millionaire your buying and selling of a stock like this will have next to zero influence on the price.
These shares are traded by funds and BIG traders in the millions; that can move the price, not Joe Bloggs down the pub.
And many here over-estimate the influence of ramping/deramping on these message boards.
Seriously, the big players are not here. They don't give a monkey's about the little arguments on here.
Shorters are taking a calculated risk that the share price is higher than it should be.
Just as punters think it is lower than it should be.
Shorters can get burned just as easily as punters can. (cf. Tesla)
I don't see a problem with it.