What's going to happen to crude oil

Weren't the Saudi's playing silly b*****s just before the Covid bug hit?

Ha Ha!
Oil demand had fallen in China by about 900,000 barrels per day due to the shutdown caused by COVID-19, which made oil prices droop. OPEC + Russia couldn't agree on production cuts to make up for it.

Then the bug hit Europe and the bottom fell out of the market entirely.
 
SA used to have huge oil reserves, some of the storage in abandoned coal mines (also had a huge underground ammo store in an abandoned mine - both were among my secure sites when in IT).

The new regime got into power in '94 and within a year or two had sold off the entire oil reserve to line their pockets, and the pockets of selected cronies who got the oil dirt cheap as middlemen and sold it on. Pretty much what Gordon Brown did with UK gold reserves, except the middlemen/cronies got the profits and spread them around to the (in)appropriate party benefactors.
 
More like the price of petrol/diesel/etc is sold based on the price at which it was bought.
There's only so much you can beat the supply/demand law.

After the price crash of 2015 vast amounts of money were spent on storage in the hope that the price would go up. It did not. The result was that a crap load of oil (which had been bought at very high prices ~$110) sat around waiting for the price to go up. The price never got to that point again.
Sure, but if the market spot price is $30, the refiners won't be buying from speculators who are trying to sell at $110.

As far as taxes go, how many times do you want to tax oil? It get taxed for the upstream producers, taxed at refineries, and taxed at the pumps, and the end products such as plastics get taxed.
It has been ever thus. Well, at least for a long time. A whole string of UK Chancellors, from both main parties, have had no embarrassment whatsoever at charging 20% VAT on fuel duty. That's right, the 58p/litre fuel duty is also subject to VAT.
 
Quite so. A tax on paying a tax. No shame whatsoever.
 
its not far off $20 per barrel on WTI.
 

AlienFTM

MIA
Book Reviewer
"On hearing of rock bottom oil prices UK petrol stations announced a price rise of 6p per litre".

Not a news story yet but give it a few days :rolleyes:
Funnily enough. Today Zero Alpha is over her 48-hour sick migraine, so we walked up to Sainsbury to buy stuff for her 60th today, plans having been thrown into chaos by said sudden onset poorly.

We normally walk the long way, which gets us half our daily 10k. Today we took the direct route and entered the precinct from the other side, past the petrol station. I passed comment on petrol and diesel, both reduced to 116.9p/litre.
 
SA used to have huge oil reserves, some of the storage in abandoned coal mines (also had a huge underground ammo store in an abandoned mine - both were among my secure sites when in IT).

The new regime got into power in '94 and within a year or two had sold off the entire oil reserve to line their pockets, and the pockets of selected cronies who got the oil dirt cheap as middlemen and sold it on. Pretty much what Gordon Brown did with UK gold reserves, except the middlemen/cronies got the profits and spread them around to the (in)appropriate party benefactors.
...and then there's this:

The U.S. will sell up to 12 MMbbl of oil from its emergency government stockpile just as global crude demand takes a hit from the spreading coronavirus.
....

The Energy Department sale announced Friday is part of a regular drawdown schedule intended to raise $450 million for government programs in fiscal year 2020. That goal may prove difficult as oil prices have plunged more than 20% this year on the back of the coronavirus contagion. The U.S. benchmark on Thursday settled at the lowest level in more than a year.
 

Oyibo

LE
There's only so much you can beat the supply/demand law.
If you have a supertanker with one million BBLs it is several months away from some of it going into your car.

Crude is not just bought on spot prices, it can be bought on future prices. At the moment, I'd be looking to buy crude - then, based on my judgement of how long it would be before prices rise, I would decide how long to keep it (either sitting in the supertanker or in a tank farm) in order to make a profit from selling. Once sold it would then have to go to a refinery, and depending on the API Specific Gravity, H2S content etc, a certaing amount would come out of the other end as something that might be suitable for internal combustion engines. From the refinery it would then have to go to petrol stations.

In other words, a drop in the price of Brent or WTI does not have an immediate impact on petrol pump prices. Although conversely, the downstream retailers are very happy to raise the price at the pumps when the price of a barrel of crude (months away from the pumps) goes up.
 
You're a Socialist Worker on the sly, aren't you?
Do any of the few hundred members of the SWP actually have a job? Not counting the head honchos who are employed by the organisation itself, not really a job but I guess they get paid from subs contributed from the other members Social Security payments.
 
If you have a supertanker with one million BBLs it is several months away from some of it going into your car.

Crude is not just bought on spot prices, it can be bought on future prices. At the moment, I'd be looking to buy crude - then, based on my judgement of how long it would be before prices rise, I would decide how long to keep it (either sitting in the supertanker or in a tank farm) in order to make a profit from selling. Once sold it would then have to go to a refinery, and depending on the API Specific Gravity, H2S content etc, a certaing amount would come out of the other end as something that might be suitable for internal combustion engines. From the refinery it would then have to go to petrol stations.

In other words, a drop in the price of Brent or WTI does not have an immediate impact on petrol pump prices. Although conversely, the downstream retailers are very happy to raise the price at the pumps when the price of a barrel of crude (months away from the pumps) goes up.
I’m not in disagreement with any of that. Try explaining it to the ”it’s a conspiracy“ brigade.
 
Oi! Who you calling thick?

Seriously though; that looks about right.

Just a guess. I used to keep bees, but didn't venture moving then to the moors for the heather flow. As well as the hassle of moving them back and forth, more hassle with extracting the honey. This was because heather honey is thixotropic, meaning it's a bit like the soft caramel in the centre of a rolo. To extract the honey, it had to be either crushed in a press, or agitated before it could be forced out with the extractor. Sorry for thread drifting.
 
A good idea or bad news, for struggling economies and administrations pre-occupied with the pandemic?

'Saudi Arabia has made good on its pledge to ramp up oil exports in April, with a first wave of crude already on its way toward Europe and the U.S., a clear sign the oil price war remains in full swing.

'The kingdom has loaded several of the supertankers it hired earlier this month to boost its ability to increase exports, according to ship-tracking data. In addition, Riyadh has used the last few weeks to shuttle large amounts of crude into storage in Egypt, a stepping stone to the European market. The movements suggest that Riyadh is ramping up its oil production toward its target of supplying a record 12.3 million barrels a day in April, up from about 9.7 million in February, despite American pressure to end the oil price war.

'Saudi Arabia earlier this month slashed its official selling prices and announced the output hike after Russia refused to join other nations inside the OPEC+ alliance to cut output. The announcement, interpreted in the market as an oil price war, sent Brent and West Texas Intermediate crudes tumbling. Since then, the collapse in oil demand due to lockdowns to stop the spread of the coronavirus have depressed prices even more.

'In a sign that Riyadh is opening the valves, oil shipments have already surged in late March. For the first three weeks of March, Saudi Arabia was exporting at a rate around 7 million barrels a day, but that jumped to more than 9 million barrels a day in the fourth week of the month.'


 

ExREME..TECH

On ROPS
On ROPs
Low oil prices?
Do the SNP still want Independence
 

ExREME..TECH

On ROPS
On ROPs

ExREME..TECH

On ROPS
On ROPs
Way back when.........one of the SSM's at the local Trog unit told us to put a bit of petrol in with the diesel just to keep it more liquidy.......there is a posh scientific word for it, but I can't be arrsed to think of it.
Diesel petrol
 

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