What's your theory on where oil price is heading?

I fueled my truck yesterday with diesel, price still not dropped much on the bowser, cost me $AUD90 which I thought was a ripoff as usually I pay around $105.
It takes 65 litres / 17.2 gal.
 
themickey said:
I fueled my truck yesterday with diesel, price still not dropped much on the bowser, cost me $AUD90 which I thought was a ripoff as usually I pay around $105.
It takes 65 litres / 17.2 gal.
More...

Gas stations are gouging the shit out of us all. They always have and always will. Like cows! Live cow meat delivery prices are coming in at like 85 bux! Your ground chuck should be $1.50 per pound for 80/20. But NOOOOO, they will keep their prices higher, because the consumer does not know better!
 
Overnight said:
Gas stations are gouging the shit out of us all. They always have and always will. Like cows! Live cow meat delivery prices are coming in at like 85 bux! Your ground chuck should be $1.50 per pound for 80/20. But NOOOOO, they will keep their prices higher, because the consumer does not know better!
More...
If a dozen countries can't manage to collude on oil prices when they legally can, it's absurd to think a couple hundred thousand gas stations could. Running a gas station isn't a great way to get rich, you really make very little on the gas itself. But buy stock in gas station companies if you think they're making windfall profits.
 
Sig said:
If a dozen countries can't manage to collude on oil prices when they legally can, it's absurd to think a couple hundred thousand gas stations could. Running a gas station isn't a great way to get rich, you really make very little on the gas itself. But buy stock in gas station companies if you think they're making windfall profits.
More...

Well, I didn't think that running a gas station was a doorway to getting rich...I figure it is just a usual business, where the owners make a living. But to gouge the hell out of it's customers is bullshit.
 
Gas stations are franchises. I can't believe such a mature industry can have good ROE's. Most franchisors of mature businesses are quite predatory. They can make money regardless of success or failure. The best profits are in the early phase under a new company, which is quite a gamble.

Might as well buy stock on margin. Everything falls on the risk curve.
 
Flotilla of Saudi Oil Threatens to Worsen U.S. Supply Glut
https://www.wsj.com/articles/flood-of-saudi-oil-looms-as-u-s-drillers-face-supply-glut-11587119400

Glutted Oil Markets’ Next Worry: Subzero Prices
https://www.wsj.com/articles/glutted-oil-markets-next-worry-subzero-prices-11586943001

Schlumberger Cuts Jobs, Slashes Dividend 75% in Historic Oil Rout
https://www.wsj.com/articles/schlumberger-to-cut-jobs-slashes-dividend-75-in-historic-oil-rout-11587127703

Does anyone really see single digit or subzero prices for WTI? If so when?
Will this change the global oil industry forever, or will it bounce back?
 
murray t turtle said:
%%
That;
+I think they own a lot of stocks, so they got the C,5% dividend.
Also sounds like they remembered the old school Bush request '' why not pump more oil , which lowers the price ''LOL/true.
Dividend buyers are feasting on CVX, XOM, KMI,EOG,PSX,VLO, OXY...……………………………….
More...
I now understand why the Saudis wanted to IPO Aramco to us dummies. They are shrewd traders.
 
If you write off the initial capital investments, marginal cost of shale oil isn't that high?

If so, maybe the Saudis will get a surprise if they think they can drive US shale out of business for long?
 
Overnight said:
The CME has been pondering this idea for over a month now. This is the latest release from their comm group...

https://www.cmegroup.com/content/dam/cmegroup/notices/clearing/2020/04/Chadv20-160.pdf
More...

There are upside strikes in US Treasuries and Eurodollars that imply negative interest rates which are actively traded..something no one ever thought was possible.

Never say never. A world where both energy prices and interest rates are negative is not that far away from happening.
 
You must log in or register to reply here.
Back
Top