EDIT: Holy Fuck! Look at RBOB!! WOW! Crude Oil WTI at lowest level since Feb/Mar of ... 1999!!

[Roland99]

Crude Oil WTI (NYM $/bbl) Front Month
Last Updated: Mar 20, 2020 at 12:13 p.m. EDT
Delayed quote
$23.02



Compare last 30 years here:

https://www.macrotrends.net/1369/crude-oil-price-history-chart


OMG! RBOB prices!
https://quotes.ino.com/exchanges/contracts.html?r=NYMEX_RB

[jimfields33]

1. Holy cow. 90 cent a gallon gas in our future like the Clinton administration

Double edge sword I know. Would be bad for environment but nobody is driving so can’t take advantage of this anyway. Second, there would be buyers going to buy up SUVs but there’s no money for that. So by the time we’re back, it will be the same price for gas it was before this started most likely.

[Roland99]

2. RBOB prices are through the floor!

https://quotes.ino.com/exchanges/contracts.html?r=NYMEX_RB

Typically, retail gas ends up being about $0.50-0.70/gal higher than RBOB (due to markup thru the chain and various state taxes)

That means we should be at about $1.20 - $1.40/gal in a week or two.

It JUST hit $1.99 at the nearest station to me but I'm in a pocket of central FL that is typically higher than surrounding areas.

[Amishman]

3. inflation adjusted numbers would be even more interesting

I still don't get what the Saudis think they are going to accomplish

They tried to squeeze US shale out of the market six years ago. It failed miserably and cost them $250 billion, 1/3rd of their reserve fund

[Roland99]

4. battle of personalities w/Putin?

[Amishman]

8. If MBS is that dumb then the middle east is even more screwed than we thought

Putin is the ultimate troll of world politics.

He's as intelligent as he is evil, and a terrifyingly good puppeteer.

Russia needs $40/barrel for stability, Saudis need upwards of $70. If that is the reason, MBS has been goaded burning down his own house to annoy his neighbor with the smoke.

[uponit7771]

9. +1

[Roland99]

13. Do they need it that high? Isn't also a way to dig at the US and its shale-oil industry?

[uponit7771]

5. Knocking out US slate oil production. Putin and SA need more control of oil and Trump will make

... sure to give it to them.

This time I think they're going after banking by trying to tap the money supply out, they're most likely shorting the banks or the traded companies.

They're desperate

[Amishman]

10. Shale oil has a lower break even price than the Saudis or the Russians

Much of the permian basin is now profitable in the mid $30s. Russia needs 40+ and the Saudis 70+

Plus shale producers are better hedged now than they were in 2014.

The numbers and fundamentals say that strategy has no chance of working

[uponit7771]

12. "permian basin is now profitable in the mid $30s" I thought it was double that. In that case they're

... panicking and I would too.

Is 30 a barrel the median or just the low end of the scale?

If its the median then i wouldn't be surprised if they spent trillion trying to knock it off the market.

SA Loses control at that price ... Obama truly screwed Putin and SA no wonder they're so mad.

[Amishman]

16. Permian is the best of the various shale basins, though even the worse ones are mostly under 60

Average for shale overall is in the mid 40s

Keep this in mind though, prior to this glut, everyone was anticipating a cut. Refiners and other consumers hedged against a price spike, so a lot of oil producers have a decent amount of capacity with contracts locked in on the high end. This is what I meant by they were well hedged.

Oil basin profitability (all, not just permian). This is 2018 / 2019 data, so it should be lower now, especially since new pipelines are dropping transport costs.

[uponit7771]

21. WOW !! Looks like the median is in the low 40s. I don't know if that's the same for the rest of

... fracking in the US but I can see why SA and Putin are scared seeing it looks like 60 a barrel is at the top of the scale for oil production.

They most likely think they have to work together on this one then, short stocks and bottom out the oil prices.

You know ... we'll see what Trumps reaction is in the next month.

If its to move to protect fracking then MBS is a nut case

If its to do nothing then he's doing his pimps needs to knock out oil production in the US

[Baitball Blogger]

6. What does it matter? We have no where else to go.

[Roland99]

7. excellent visual aid!

[irisblue]

11. RBOB meaning from the internet

RBOB is an acronym for 'Reformulated Gasoline Blendstock for Oxygen Blending' and is a term used for unleaded gas futures. RBOB is heavily dependent on crude oil, as it is a refined product of the commodity.May 19, 2017

[Roland99]

17. thanks for the details there

[Tommy_Carcetti]

14. With Shelter in Place becoming more and more widespread...

....not too many people are going to enjoy this or care about this.

Even for people like me who haven't totally shut in....I drive to my office and back, and that's been it.

[Spider Jerusalem]

15. Economy is collapsing

Demand is near zero, not coming up soon, price of oil only matters insofar as US tight oil producers will collapse

[eleny]

18. With our King Soopers (Kroger) grocery points our fill ups would be $0.00

[Celerity]

19. this chart says it all

[ucrdem]

20. Seems like peak oil was just yesterday.

Good times!