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Oil prices crash

not-bono-ever said:

As Chinese banks halt open positions for oil products, investors cry foul

Chinese investors who traded Bank of China’s (BoC) crude oil futures trading product are crying foul over the bank’s decision to settle the trades at historic negat…
business.financialpost.com business.financialpost.com

no one told me that i could lose everything gambling etc etc
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Sounds like they got off lightly, I was reading an article talking about one investor who had put in $500,000 lost the lot and now owed the bank an additional $1.2M
 
Good grief I love the libertarian fetish for gold. It's like they want to actually become the moustache-twirling evil capitalists from early 20th century labour union propaganda. It's so appropriate that they would fetishise a gaudy substance that is useless in most practical applications.

N.B. I think silver looks better than gold anyway.
 
extra dry said:
if you haven't seen it this kind of covers a lot.

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e2a should've refereshed the page

"Buy my book."

extra dry the Bank of International Settlements is the Central Bank's Central Bank. Worth reading what they post.

5 minutes in and he starts talking about gold / silver ratios. "Buy my book"

10 minutes "Price means nothing, value is everything." ?? You can't eat gold or silver. Though tbf Jazz did try. Yes, a glass of water has more value if you're thirsty.

15 minutes "True wealth is all the goods and services that we create for each other. The currency is nothing but a measurement tool and temporary storage device."

This is true but the same could be said of precious metals and not all goods and services are created equal.

As I said to ska on another thread where he linked to one of those videos. The people who made money in the US west coast gold rush were those selling picks & shovels.

extra dry think you might enjoy this as there's a dig at MMT in the video. The World According to Modern Monetary Theory

tldr "Buy this book if you want to know more!"
 
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NoXion said:
Good grief I love the libertarian fetish for gold. It's like they want to actually become the moustache-twirling evil capitalists from early 20th century labour union propaganda. It's so appropriate that they would fetishise a gaudy substance that is useless in most practical applications.

N.B. I think silver looks better than gold anyway.
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Silver has industrial applications though, so is less likely to rise in value in the same way gold is I.e. Inversely to the market
 
yield yes he does repeat that a few times buy my book...they do a free downloadable book to. The companies making money here are the PPE, delivery companies like LINE/Foodpanda/shoppee/Lazada.
 
Covid-19 crisis will wipe out demand for fossil fuels, says IEA
Thu 30 Apr 2020
Renewable electricity will be the only source resilient to the biggest global energy shock in 70 years triggered by the coronavirus pandemic, according to the world’s energy watchdog.

The International Energy Agency said the outbreak of Covid-19 would wipe out demand for fossil fuels by prompting a collapse in energy demand seven times greater than the slump caused by the global financial crisis.

In a report, the IEA said the most severe plunge in energy demand since the second world war would trigger multi-decade lows for the world’s consumption of oil, gas and coal while renewable energy continued to grow.
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Not sure why a collapse in demand for energy in general should be weathered any better by the renewable sector, and the article doesn't really explain why the IEA thinks so, either. Seems a little wishful thinking.
 
Flavour said:
Not sure why a collapse in demand for energy in general should be weathered any better by the renewable sector, and the article doesn't really explain why the IEA thinks so, either. Seems a little wishful thinking.
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Absolutely! Can't blame them for looking for a silver lining. Climate Change hasn't gone away.
 
Analyst: 4 Billion Bu. Ending Stock Possible if Big Crop, Less Ethanol
Farm Journal. Apr 29, 2020
Ethanol plants are remaining idle across the U.S. due to lack of demand and COVID-19 issues. The problem is bleeding into the corn market across the board.

“As Americans stayed at home and we started driving fewer miles, as much as 53% fewer miles, ethanol usage started to come off the rails,” says Dan Basse with the AgResource Company. “Crude oil prices dropped and we were left with this oversupply.”
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Basse says AgResource estimates the industry has now closed roughly 51% of its plants.

“If you think about it in on a month-to-month basis, that’s about 250 million bushels of corn that we are not consuming,” says Basse. “[As] Months and months go by, that starts to add up. We think by the end of summer or early fall, maybe 1.1 to 1.3 billion bushels of U.S. corn will not be consumed by ethanol.”
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that's a lot of corn. Trump has said that meat production is a key industry though and cheap meat is reliant on cheap corn, so some of the excess corn might be soaked up by the agro-industry.
 
Flavour said:
Not sure why a collapse in demand for energy in general should be weathered any better by the renewable sector, and the article doesn't really explain why the IEA thinks so, either. Seems a little wishful thinking.
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I'm no expert but it should be, relatively speaking. For the most part it doesn't have a huge production or storage problem. The manufacturing elements are still required.
 
Texas Oil Boomtowns Devastated by Coronavirus
NYTimes. May 1, 2020
‘This Feels Very Different’
MIDLAND, Texas — In just over a month, scores of drilling rigs have been dismantled and tucked away in storage yards. Pump jacks, those piston pumps that lift crude out of the ground, have seesawed to a standstill as operators shut down wells.

Oil field workers who dined on strip steak and lobster before energy prices went into a tailspin in March are now standing in line at a local food bank for the first time.
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As the coronavirus spreads around the world, people are no longer commuting to work, flying on planes and going on cruises, smothering the demand for oil.

“We’ve had our ups and downs, even over the last 20 years, but this feels very different,” said Matthew Hale, president of S.O.C. Industries, a pump truck and chemical services company that has operated in the Permian for 19 years. “We’re concerned about our industry, survival and what survival is going to look like.”
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Proper Tidy said:
UAE can't be in good shape with no tourists + this.
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Although the regime is vile, the UAE is exceptionally efficiently managed, is sitting on a humorous treasury reserve pile, and has diversified into loads of other things. They will come out of this better than most
 
Iraq, Libya, Congo and Kuwait had the most oil-dependent economies the last time I checked, all over 30%. KSA in fifth with around 20%. This data is from 2017 though
 
Has there been much from the peak oil angle yet? The only reason I mostly stopped going on about that subject was that some people were too wedded to the proposed peak oil timetable that was popular in the 2000's, and were too resistant to updating their views on the timescale when the original predictions did not come to pass. I bought into that timescale but I was not resistant to changing my views once a different picture emerged. Well, it was a bit more complicated than that, it certainly looked like there was a plateau of conventional supply within that timescale, but a bunch of alternatives on top of that scaled up well beyond what some were expecting. Combine that with the obvious signs that a lot of the future action would be seen as coming from the demand side rather than the supply side (eg financial crisis demand destruction), and the loss of sense of immediacy, and the simple peak oil supply stuff lost a lot of its momentum. But I never lost my interest in some of the underlying details, and when combined with climate change I still expected the transition to be one of the biggest stories of this century. And the rather amazing level of demand destruction caused by the pandemic certainly makes me wonder if we are now past the peak, that even with some recovery the trajectory has been altered to the extent that we wont now end up with another decade of oil growth before the decline really kicks in.

And now some charts about what the BBC call the biggest carbon crash ever recorded.

www.bbc.co.uk

Climate change and coronavirus: Five charts about the biggest carbon crash

How the global pandemic is limiting carbon emissions and what this will mean for climate change.
www.bbc.co.uk
 
US fossil fuel giants set for a coronavirus bailout bonanza
Tue 12 May 2020
Fossil fuel companies and coal-powered utilities in the US are set for a potential bonanza under federal government plans for a bond bailout, part of the rescue package for the coronavirus crisis.

At least 90 fossil fuel companies, many of them established giants such as ExxonMobil, Chevron and Koch Industries, stand to gain from the Federal Reserve’s coronavirus bond buyback programme, alongside more than 150 utilities including coal-heavy firms such as American Electric Power and Duke Energy, according to a new analysis.

The bond buyback scheme is expected to be worth at least $750bn (£605bn) altogether and to benefit thousands of companies by the end of September, and the size of the payout that could go to fossil fuels and utilities is as yet unknown. The scheme is to be discussed in the US Senate on Tuesday.
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yield said:
Covid-19 crisis will wipe out demand for fossil fuels, says IEA
Thu 30 Apr 2020
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I just got round to reading a bit of the IEA report. I like to see what comparisons they make and what language they use.

www.iea.org

Global Energy Review 2020 – Analysis - IEA

Global Energy Review 2020 - Analysis and key findings. A report by the International Energy Agency.
www.iea.org www.iea.org

Oil demand could drop by 9%, or 9 mb/d on average across the year, returning oil consumption to 2012 levels.
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Global CO2 emissions are expected to decline by 8%, or almost 2.6 gigatonnes (Gt), to levels of 10 years ago. Such a year-on-year reduction would be the largest ever, six times larger than the previous record reduction of 0.4 Gt in 2009 – caused by the global financial crisis – and twice as large as the combined total of all previous reductions since the end of World War II. As after previous crises, however, the rebound in emissions may be larger than the decline, unless the wave of investment to restart the economy is dedicated to cleaner and more resilient energy infrastructure.
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Resilient, yes thats one way of putting it.
 
I used to fill my car's fuel tank up most weeks because I was driving quite a lot. However the last time I filled up was 20/03/2020, some 8 weeks ago, and I still have 3/4 of that tank left.
 
weltweit said:
I used to fill my car's fuel tank up most weeks because I was driving quite a lot. However the last time I filled up was 20/03/2020, some 8 weeks ago, and I still have 3/4 of that tank left.
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I filled mine on the 12/03/2020 and have done 16 miles since then.
 
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