Oil's Worst Week Since 2011 Puts Pressure on OPEC+ to Respond

[riversedge]

Source: bloomberg


February 27, 2020


(Bloomberg) -- Oil was on course for its biggest weekly loss since 2011 as the fast-spreading coronavirus roiled global markets, intensifying speculation that OPEC and its allies will strike a deal to support prices.

Futures in New York fell a sixth day after fears over the outbreak sent shares on Wall Street down by the most in almost a decade. With crude prices down around 14% this week, there are signs that OPEC and its allies could be nearing agreement on action to stem the rout before meeting in Vienna next week.

The group’s top official said the cartel and its allies are displaying a “renewed commitment” to reach an accord as the virus puts the world economy on course for its worst performance since 2009. Saudi Arabia has been pushing for deeper production cuts over the last few weeks, but Russia has so far taken a more cautious stance. One silver lining for markets is that prices are now at a level that may be uneconomic for U.S. shale producers.
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The kingdom is now pushing for collective OPEC+ production cuts of an additional 1 million barrels a day, which it would bear the brunt of, according to a report in the Financial Times. That’s more than the 600,000 barrels per day of reductions that were recommended earlier this month by an OPEC+ technical panel.

Read more: https://finance.yahoo.com/news/oil-extends-biggest-weekly-loss-233425722.html

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Donald Trump's night so far:

- Thinks we're safe from coronavirus because he closed the "boarder"
- Pence puts Mnuchin in charge of virus response
- #TrumpVirus is trending
- Stock market collapse
- Trump's presidency in freefall
- Trump is going to prison
- It's still only 10pm

Link to tweet

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[Apollo Zeus]

1. Good time to stop tar sands once and for all

Keep it in the ground.

And no bail out for the oil business because THAT'S SOCIALISM!!11!!

[Warpy]

2. They'll cut production. It won't help.

Markets on lockdown aren't shipping in or out. People are canceling travel plans. Factories and refineries alike will be cutting production because of decreased demand.

Not a good time to be sitting in an oil patch, eh?

[pbmus]

3. There are already 50 + tankers waiting to unload in gulf and other USA refineries....

The world will soon be awashed in oil, dirty filthy, grimy oil.

[Warpy]

5. You're dissing the bulk of the portfolio my dad surprised me with

when he died. The point is taken, but I also know quite a few people researching clean energy tech on that company's dime, so there is some minor deodorant, also.

The truth is that why we are still requiring steel for things, there will be filthy coal. Until we make the swap over to electric cars with some of the new battery tech starting to mature extending range, with solar powered recharging stations, there will be a need for oil.

What I'd like most to see is reduction and recycling of plastic before our food chain is so contaminated by it that we starve to death while stuffing ourselves. Thermal depolymerization could help with plastic waste, it would likely be even more efficient than a pilot program was with turkey guts.

[ansible]

4. So why is gas still $3 a gallon here in California?

[IronLionZion]

6. local gas prices are also tied to refinery output and local consumption

so your gas prices are still controlled by California's supply and demand. Crude oil is a more global market impacted by global supply and global demand.

But look for freepers to blame socialism and taxes instead.

[oldsoftie]

7. But there isnt a shortage of supply anywhere. Apparently they'll charge whatever people will pay.

I was just in Cal. last week. I saw prices vary from 3.27 to 4.38 in just a 10 mile ride. Even with the 2nd highest gas tax in the country, there's no way they should be paying over 3.25. But people out there drive everywhere, so as long as they keep paying, they'll keep charging.
It's still odd to me though, because Atlanta is the same as LA when it comes to driving. But the price there isnt much different than it is 150 miles south. I'd think they'd be charging a lot more in Atl with all the car slaves

[IronLionZion]

8. Plenty of folks would drive 10 miles to save $1.11 a gallon

Were the higher prices on busy commuter routes or wealthy neighborhoods? I would just go wherever has the lowest price.

[oldsoftie]

9. Me too! I was driving from LAX to West Hollywood. It was actually cheaper near LAX

Which is the opposite of what you'd usually see
Even where I live, I've seen two stations pretty much across the street from each other charging .20 a gallon different. And people getting gas at the high one. I dont get it

[gab13by13]

10. I live in the #1 gas tax state, Pa.

and gas today was $2.65 gal.

[projectiboga]

13. Taxes

The regressive gas tax, as well as the market being so consolidated. The consolidation of the producers and processors means they only rush to raise prices and take their time slowly lowering prices.

I'm not anti-tax, I'm just anti regressive taxes like sales, property and government fees beyond reasonable costs.

[Zorro]

11. Oil stocks at this price are paying tremendous dividends

If you don't object to investing in them, Occidental Petroleum is paying 10%+ at current market prices, and many others are over 8%+ today.

[jayfish]

12. So, If Oil Is A Commodity;...

why are producers allowed to manipulate its price?

[demosincebirth]

14. So, why is the price of gallon of gas still so high? In Calfornia it's only dropped 5 cents in the

last three months while crude dropped 14 dollars a barrel.