Oil price crashed to 0

[Zulfiqar]

loooool ok....the reason i asked you is because i know. anyways this is useles. have a nice day

Then you would have also known the answer to my questions as well but you keep circumventing them.

Good luck procuring crude via WTI for Pakistan though.

 

[Trango Towers]

Then you would have also known the answer to my questions as well but you keep circumventing them.

Good luck procuring crude via WTI for Pakistan though.

why the F would anyone procure WTI for Pakistan? I was polite to you and you think you are something? no jog on. show me where I even mentioned procuring WTI for Pakistan? I challenge you...now u will return with waffle.

 

[Zulfiqar]

why the F would anyone procure WTI for Pakistan? I was polite to you and you think you are something? no jog on. show me where I even mentioned procuring WTI for Pakistan? I challenge you...now u will return with waffle.

Polite, look at your first quoting me where you blab with such cockiness. You clearly need to go out in this lockdown to clear your head.

This thread is about WTI. I replied on that. In your cockiness you tried to "educate" me on the business model and "what this thread is about" clearly forgetting that the opening post mentions WTI.

Now please get off your high horse and please only quote someone when you actually know "what this thread is really about".

 

[Trango Towers]

Polite, look at your first quoting me where you blab with such cockiness. You clearly need to go out in this lockdown to clear your head.

This thread is about WTI. I replied on that. In your cockiness you tried to "educate" me on the business model and "what this thread is about" clearly forgetting that the opening post mentions WTI.

Now please get off your high horse and please only quote someone when you actually know "what this thread is really

See I told you you will waffle...you didnt answer did you..
You are a serial waffler.
Jog on

 

[Zulfiqar]

@Trango Towers

You clearly are high man if you cannot see the first post about WTI, my reply and your stupid response to it where you tried to "educate" me about what this thread is really about.

 

[Trango Towers]

@Trango Towers

You clearly are high man if you cannot see the first post about WTI, my reply and your stupid response to it where you tried to "educate" me about what this thread is really about.

Idiot...who is talking about pakistan buying WTI? Not me ...you are drunk on your own BS. Now get lost jahil. Educate you.. the illiterate will remain

 

[Zulfiqar]

Idiot...who is talking about pakistan buying WTI? Not me ...you are drunk on your own BS. Now get lost jahil. Educate you.. the illiterate will remain

Do you have some sort of comprehension problem? Clearly you have because you demonstrated that when you quoted my first post.

You need to first learn what this thread was really about man before running in circles.

 

[Trango Towers]

Do you have some sort of comprehension problem? Clearly you have because you demonstrated that when you quoted my first post.

You need to first learn what this thread was really about man before running in circles.

Well it certainly wasnt about Pakistan buy wti was it ?? That's your imagination and then you blamed me for it....I told you show me where is said this and told you that you will not provide proof and will just waffle....here we are. You waffling. Best drop the subject and move on. I have a feeling you wont

 

[Zulfiqar]

Well it certainly wasnt about Pakistan buy wti was it ?? That's your imagination and then you blamed me for it....I told you show me where is said this and told you that you will not provide proof and will just waffle....here we are. You waffling. Best drop the subject and move on. I have a feeling you wont

I also don't have time to waste on you. But you clearly were wrong in your first post when you quoted me. Rather than admitting the fact, you are just blabbing around giving explanations while conveniently forgetting what you were trying to say in response to my post.

When you quote someone, do so when you can back it up.

Let me be clear. I have decade plus experience working in finance with clear adequate knowledge about the futures/derivatives market apart from my professional qualification in this field. This is not the hill to die on for you.

Move on and stop wasting time and learn something before quoting someone.

 

[Trango Towers]

I also don't have time to waste on you. But you clearly were wrong in your first post when you quoted me. Rather than admitting the fact, you are just blabbing around giving explanations while conveniently forgetting what you were trying to say in response to my post.

When you quote someone, do so when you can back it up.

Let me be clear. I have decade plus experience working in finance with clear adequate knowledge about the futures/derivatives market apart from my professional qualification in this field. This is not the hill to die on for you.

Move on and stop wasting time and learn something before quoting someone.

yet again you are writing essays...i only read the 1st line...bye
it was you who brought up Pakistan buying WTI. i challenge you for proof now 3 times and you write all bullshit but no evidence...pathetic.

 

[niaz]

@niaz Sirjee, Your comments...?

Honorable Sir,

Answering your question is not simple. Nearly all, from the CEO of major oil companies to ordinary oil men like me are in a ‘Shock’ because Nynex May WTI contract closed at minus 3.76 per bbl. This means that WTI contract holders were willing to pay anyone $3.76 per bbl if he were willing to take May WTI crude off their hands. An unheard situation in the history of the oil industry. Since everyone has 20/20 hindsight, I can easily explain why but can only guess what is to come.

Each WTI Futures contract is a promise to buy (long position) or to sell 1000 bbl of West Texas Intermediate Crude at its delivery point, Cushing Oklahoma. The contract terminates 7 days before the 26th of the month prior to the month of delivery. Therefore both the long & short positions have to square off or rolled around the 20th of the previous month. This time because all the available storage is full, people/companies who are long and would start getting the physical delivery from May 1, have no place to store it. Hence ‘Zero’ takers and those with the short positions (who were to deliver) and who would have normally accepted the difference in the selling price and current price to square off the positions, had to be coaxed into accepting their sale price plus $3.76 per bbl ($3,760/- per contract extra) for foregoing physical delivery of the crude.

Future oil price is currently in a deep ‘Contango’ (forward price higher) at the time of writing this with June WTI contract at $13 per bbl and July at $20; June Brent is at $20 per bbl and July Brent at $24.

Because of the increased Shale oil production (7.7- mm bpd) in 2019 in the USA alone; Opec Plus in its meeting on Dec 6, 2019, had decided to cut their production by 1. 7- mm bpd in Dec 2019 meeting. At that time oil price was hovering around $60 per bbl. However, with the onset of Coronavirus & the resulting economic slowdown prices kept on dropping. Another meeting was therefore convened on the 5th of March 2020 where it was proposed to cut the production by another 1.0- mm bpd by Opec and 0.5-mm bpd for non-Opec oil producers. However Russia did not agree and to punish Russia, Saudis unilaterally reduced its April OSP. The net result was the immediate oil price drop from about $50 to $45 per bbl. However, with the worldwide spread of Coronavirus and a sharp reduction of demand the world over, oil price decline continued. It is estimated that by April world oil production exceeded the demand by about 23-mm bpd.

OPEC Plus meeting of April 12 agreed to reduce the production by 10-mm bpd. But it was too little & too late. Oil production needed to be cut by 25-mm bpd. The oil prices have therefore declined by almost 90% since the start of the year.

The above is not rocket science and well-known to all who have been involved in the international oil trade and/or in future oil trading, but you would not find anyone who can be certain about what next?

As the world recovers from COVID-19, as it would sooner or later; oil prices would surely bounce back but to what level is the million-dollar question. In my humble opinion, $100 per bbl oil is now history and would never happen; $50 per bbl is possible but it would take quite a few years; the demand of LNG, however, is likely to recover more quickly.

 

[Zulfiqar]

yet again you are writing essays...i only read the 1st line...bye
it was you who brought up Pakistan buying WTI. i challenge you for proof now 3 times and you write all bullshit but no evidence...pathetic.

WTF. You have comprehension problems.

Read my first post again that you quoted and my subsequent replies to it and also read the opening post or better ask a grown up to do it for you.

Enough of this circle jerk.

 

[riscol]

Killing a journalist proved to be an unwise decision having a greater economic impact on SA's economy.

 

[Trango Towers]

WTF. You have comprehension problems.

Read my first post again that you quoted and my subsequent replies to it and also read the opening post or better ask a grown up to do it for you.

Enough of this circle jerk.

Which bit of jog on dont you understand.

Dick head when you made an accusation I asked you to prove it...you are still barking like a rabbid dog without proof and I told I then you will bark but not provide proof..here you are still with rabies. Now dafa ho...jahil insaan. 10 year experience in financial services..... what dodnyou learn other tha deal in haram interest and bark bullshit.

Welcome to ignore....I would call you a dick but a dick is useful..

 

[Zulfiqar]

Which bit of jog on dont you understand.

Dick head when you made an accusation I asked you to prove it...you are still barking like a rabbid dog without proof and I told I then you will bark but not provide proof..here you are still with rabies. Now dafa ho...jahil insaan. 10 year experience in financial services..... what dodnyou learn other tha deal in haram interest and bark bullshit.

Welcome to ignore....I would call you a dick but a dick is useful..

Dude first learn some basic finance before quoting/commenting on other's posts.

Rest of your post is not worth commenting as you are incoherent.

Added in ignore list.