$1.2 west Texas crude!

[brokephibroke]

If you have the space, buy a tanker full.

[Shermann]

1. Not that I would do that...

but how exactly would you do that?

[jmowreader]

2. And what, exactly, am I supposed to do with 120 barrels of crude oil?

You can't use it the way it is, and none of us have the equipment we need to refine crude oil.

[Renew Deal]

4. It's sweet crude.

Cook with it

[ProfessorGAC]

7. Yuck!

Somehow I think olive or corn oil would taste better!

[BGBD]

33. Olive!

stay away from the corn oil.

[ProfessorGAC]

34. Why Would That Be?

High in polyunsaturates, low in low chain glycerides. Only slightly higher in glucosides than canola. And very few flavenoids, so it doesn't impose flavor if that's not what one wants.

[BGBD]

36. well

Health wise its loaded with Omega 6, which we are already overloaded on compared to Omega 3. Highly refined as well.

However, the bigger reason is that the way we grow corn and soy is pretty terrible. All GMO, and loads of fertilizers and pesticides, and terrible for biodiversity.

in the same vein a good reason to avoid palm oil is that palm farming is leading to massive deforestation.

[ProfessorGAC]

39. Palm Oil Is Bad Counter Example

Palm oil is low in polyunsaturates, has a substantial fraction of C12 & C14 saturated fats, and the issues concerning plantation operating models.
The industries involved (using palm oil as a source of oleochemicals) have a certification called RSPO. Responsibly Sourced Palm Oil. (It includes coconut oil, as well.). The intent is to have responsible companies refuse to buy from plantation operating companies who fail on replanting schemes & mistreat workers. This is fairly new to those industries. Around 5 years, I believe.
But, palm oil is not a good nutritional analog to corn, canola, sunflower & soy. It actually has an unsaturated level that's just a little higher than beef fat. I wouldn't use palm oil for anything in food.
Don't think the bad behaviors in the palm based oil production is very comparable to corn oil. I live pretty close to where Illinois turns into one big corn & soybean farm. I've seen no slave quarters! Palm oil plantations are WAY more offensive.

[BGBD]

43. are

we setting the bar of good agriculture at "Do they have slaves?" I feel like we can have a higher standard.

[ProfessorGAC]

44. If You Got That...

...from what I wrote, this discussion is over.
Putting words into another's mouth is a sign of weakness.
I'm out.

[BGBD]

46. I think anyone can read what you wrote to see it was you who brought up slaves.

While ignoring the larger issues of ecosystem degradation that comes from large monoculture farming practices using highly modified crops.

[Blue_true]

38. Extra virgin olive oil is hard to beat. For everything except deep frying, I will

take it any day over corn oil or any other common food oil.

[brokephibroke]

10. Sell it later.

[jmowreader]

31. I don't think anyone would be interested in that little crude

One oil futures contract is for 1000 barrels. In a refinery, 120 barrels is nothing.

[beachbumbob]

3. unheard of and methinks something is very wrong here with this

[A HERETIC I AM]

17. What's wrong is global demand has utterly collapsed.

The vast majority of the worlds airline fleet is idled, and the number of miles driven by automobiles is a tiny fraction of normal.

There is a massive oversupply, storage tanks are nearing capacity and the various fuels made from Crude Oil aren't being used anywhere close to what is commonplace.

[zackymilly]

5. The barrel costs more than the oil inside. n/t

[Baclava]

15. I picked a bad time to sell my boat that uses 2 gallons to the mile, I need a bigger boat!

[HAB911]

6. futures contract down 95% to record low under $1

.90

[NightWatcher]

8. It hit 0.00

Link to tweet

[brokephibroke]

11. Saw that.

Yikes!

[zackymilly]

12. It can go below zero.

The falling oil prices could eventually go below zero as oil supply outstrips global storage capacity. Negative oil prices will lead to a spate of bankruptcies in the oil and gas sector and — if it lasts long enough — entire countries could see their economies collapse.

https://www.ccn.com/this-is-how-oil-prices-can-crash-below-0-yes-really/

[Baclava]

9. Damn, buy a fleet of tanker ships and park them at the dock!

[A HERETIC I AM]

24. I'll bet you can't find one to buy!

The article linked above states that storage is at a premium. I would venture that just about every single large oil tanker in the world is full and waiting for a place to offload. Either that or moving with the engines set at "Dead Slow".

[Baclava]

28. Aren't there giant underground salt mines we can fill up with oil? 100 years of storage! Fill it all

[A HERETIC I AM]

30. There are! And that's what is used to store the "Strategic Reserves" in this country

Saw a piece about how the US Gov't is buying oil right now to refill those big holes!

Here's an interesting place;
Cushing, OK.

When you see a quote for "WTI" or "West Texas Intermediate", the price per barrel is based on delivery, via pipeline, to this little town in Oklahoma.

Open that Google maps link and zoom in on the south side of town. The storage there is a significant portion of the 91 million barrels of storage capacity around Cushing.

[Baclava]

32. Maybe we can buy it and inject it back down into empty wells!

[A HERETIC I AM]

35. One of the most interesting descriptions of an oil well was told to me years ago;

And this guy was speaking about the Texas Oil Patch specifically, but said that most strata around the world shares some of these properties.

(And I am by no means a geologist or an oil well expert, so If I am wrong on any of this, or if I have remembered it wrong, I am not offended by correction)

He told me this;

Imagine a common, household sponge like this, sitting on your counter, that is soaked with water ->

If you place a straw in the center and suck on it, you will dry out the area right around the straw, but you will find it very difficult to draw all the water out, all the way to the edges.

However....

If you stop sucking when the flow gets slow, the water at the outer edges will over time, seep back toward the center where your straw is, and then if you sucked on it some more, you would get good flow until it dried out again. You could repeat this process several times but you would...and this is the important part...NEVER GET THE SPONGE COMPLETELY DRY.

The strata that holds oil in most of the producing fields worldwide share similar traits. The reason "Fracking" is so effective is that the sponge, in this hypothetical is injected with fluid under enormously high pressure, driving the remaining oil toward the straw. It is as if instead of sucking on the straw in the middle, you are blowing into it, but now have 2 or 3 or even more straws all around the edge of the sponge, collecting the oil that is being displaced.

We all remember seeing footage of the "Gusher" in Texas and other fields. As I understand it, finding oil under such pressure in North America is extremely rare, these days, because we have tapped it all and sucked most of it out of the ground.

It's that sponge. The sponge is nearly dry, but there is still a lot of recoverable oil down there.

The problem with injecting oil back down into a well and into the sponge, is that it is not nearly as effective as one needs it to be, nor is it economical. Why bother? Just don't pump it out in the first place!

[Politicub]

45. That town has a very pleasing grid pattern. N/t

[roamer65]

13. -1.43

[brokephibroke]

14. Wow. They will pay you to store it.

-$3.70 now.

[roamer65]

16. Can anyone say Depression?

[brokephibroke]

18. Hope not

June and July contracts are still around $20 a barrel.

[roamer65]

19. We are on the edge of one.

The Federal Reserve needs to go all out.

[brokephibroke]

20. So much liquidity being pumped

And unlimited QE. No one has seen this before.

[roamer65]

21. I like what Rep Ryan of Ohio is advocating.

$2000 a month. Keep average people liquid.

[brokephibroke]

26. Social change is afoot!

[malaise]

22. They will now pay you to take it

West Texas gone negative- from Bloomberg

[zackymilly]

23. Bring back the trading stamps and chinaware with every fill up! n/t

[muriel_volestrangler]

25. The point being that anyone holding the ownership tonight has to be able to store it

The drop was also driven by a technicality of the global oil market. Oil is traded on its future price and May futures contracts are due to expire on Tuesday. Traders will be keen to offload those holdings to avoid having to take delivery of the oil and incurring storage costs.

https://www.bbc.co.uk/news/business-52350082

So this indicates the cheap storage in the USA is all full. This is a game of "pass the parcel" - no one wants to be left holding the oil.

[roamer65]

27. We haven't seen demand destruction like this since the Great Depression.

Crazy days.

[flotsam]

29. How do I let the producers know

I'll only charge them $2.68.9 to put their oil in my gas tank. They should take the deal now before I turn it into an auction for my available space!

[Blue_true]

37. That price sounds like a derivative price.

The right to buy oil at a certain price per barrel by a certain date. Derivative prices drop hugely as the expiration date nears, if the price of the underlying commodity is changing in a direction that makes the derivative worthless. For example, if I pay $2 for the right to buy a barrel of oil at $50 by April 25, but the price of oil is at $40 per barrel and dropping, I will just let the derivative expire rather than buy oil at $60 per barrel and sell it for $40 (a big loss). Now if oil was at $75 per barrel, I would sell the derivative for a big profit, or buy oil at $60 per barrel, then turn around and sell it for $75 and pocket the $15 minus transaction fees.

[DFW]

40. And if you don't have the space

Buy a tanker!

[GoCubsGo]

41. Or, just stop pumping the damn stuff.

[DFW]

42. Far too good an idea.

It'll never take.