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Cheaper than free oil?


Mightyfordranger

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Just read today that oil prices went below zero? I don't quite understand what this means. Can someone explain it?
 


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snoranger

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Probably that it’s costs more to produce it then it sells for.
 

adsm08

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They'd pay you to take the oil.
 

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Cheap new tires?

Fingers crossed... :whistle:

I don't get how a commodity can go negative though...

@PetroleumJunkie412 do you know how this works?
 

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I think it means he is out of work at this point...

I asked the same question over in the cheap gas thread... I don't have a clue where it goes from here.

We better get people back to work soon.
 

4.0blue98

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PetroleumJunkie412

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Storage and transportation costs exceed the commodity's value.

Storage is now more valuable than the oil filling it, by that large of a margin.
 

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Ill let you store your gasoline in my tank for 10 bucks...
 

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I was confused too. Evitdenlty it's the future stock value of the oil that dropped below zero. (-$27) From what they said that means people were paying $27 to get it off their stock package per share.

Bent Crude (the most common one used) was at $20 a barrel.
 

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I was confused too. Evitdenlty it's the future stock value of the oil that dropped below zero. (-$27) From what they said that means people were paying $27 to get it off their stock package per share.

Bent Crude (the most common one used) was at $20 a barrel.
so we all should go get bent??? :shok:
 

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Oil is stupid.
 

adsm08

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85_Ranger4x4

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I was confused too. Evitdenlty it's the future stock value of the oil that dropped below zero. (-$27) From what they said that means people were paying $27 to get it off their stock package per share.

Bent Crude (the most common one used) was at $20 a barrel.
Futures are weird... speculated future prices of grain always seem inaccurate and hokey but it somehow steers the current prices of things.
 


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