even may/june taking a hit down to 16ish. every American gets a free barrel of oil
Oil & Gas Bailouts incoming...
Donald J. Trump
We will never let the great U.S. Oil & Gas Industry down. I have instructed the Secretary of Energy and Secretary of the Treasury to formulate a plan which will make funds available so that these very important companies and jobs will be secured long into the future!
9:33 AM · Apr 21, 2020·Twitter for iPhone
The big producers have space to store the overproduction.
IMHO, the Saudis wanted to slow down production and Russia tried to flex it's muscle on a weakened SA. SA then went full Karen on Russia, damn the consequences, and they both got hurt. In any case, the ultimate goal of OPEC is to eliminate non-member production.
Last edited by robr2; 04-21-2020 at 10:26 AM.
Americans hate EVs because they grew up with Power Wheels that were glacially slow, ran out of power in 20 minutes and took an entire day to recharge.
Interestingly, larger oil company stocks have actually gone up over the last couple of weeks. In a way, I think bad news is good news. A massive storage shortage means shut-in wells, which means production will absolutely crater. Shutting in wells can actually permanently damage production capacity, which may mean higher prices once the economy has restarted and the storage glut has been cleared.
Looks like the bottom is in for gasoline demand.
From https://www.eia.gov/petroleum/weekly...-stocks-supply the exact numbers for the last 4 weeks are:
Gasoline demand (million barrels per day)
The pretty graph above is the 4-week average, which after 6 or 7 weeks of declines appears to have found its bottom and is on the rise now based on the non-averaged weekly figures above. It's still going to take a long time to reach anything approaching normal, but it does appear based on the figures released today that gasoline demand is modestly picking up again.
OPEC+ Agrees to Extend Output Cuts as Cheats Offer Penance
Updated on June 6, 2020, 8:46 AM EDT
https://www.bloomberg.com/news/artic...-offer-penance• Iraq, Nigeria will compensate for missing their output targets
• Some observers are skeptical that cuts compliance will improve
• OPEC+ has agreed on a one-month extension of record output cuts, intended to further support the oil-price recovery.
Saudi Arabia's oil exports plunge $11 billion in first quarter
DUBAI (Reuters) - The value of Saudi Arabia’s oil exports plunged by 21.9% year on year in the first quarter to $40 billion, corresponding to a decline of about $11 billion, official data showed on Sunday.
Brent crude prices fell more than 60% in the quarter hurt by the coronavirus pandemic and an oil price war between Saudi Arabia and Russia following the collapse in March of talks on further production cuts.
The decline in oil exports was the main reason behind a 20.7% decline in the value of overall merchandise exports in the first quarter, the General Authority for Statistics said on Sunday.
Non-oil exports, including chemicals and plastics, fell by 16.5%, it said.
China was the main destination for Saudi exports in Q1, followed by Japan and India. China was also the main origin for Saudi imports.
Saudi Arabia posted a $9 billion budget deficit in the quarter as oil revenue fell by 24% to $34 billion.
Reporting by Davide Barbuscia
The glut is real:
The International Energy Agency published its latest oil market outlook last week, pushing its quarterly forecast out to the end of 2021 for the first time. It doesn’t think demand will have fully recovered by then. In the final quarter of next year it predicts global oil demand will still be running about 2 million barrels a day below pre-pandemic levels, and more than 4% below where it might reasonably have been expected to be in the absence of the crisis.
By the end of this month, global stockpiles are expected to be about 2.7 billion barrels above where they were at the end of 2013. That’s nearly four times the excess seen after the first shale boom in early 2017, when oil prices collapsed toward $25 a barrel. That’s an important point of comparison because it was then that Saudi Arabia and others decided that Organization of Petroleum Exporting Countries wouldn’t, or couldn’t, manage the oil market on their own — and the wider OPEC+ group was created, bringing more countries, including Russia, to the table.
Prices have ticked back up to right around $2/gal (87) in my area and by the sounds of that article, they are likely to level out there for at least the summer, especially as travel demand won't spike like it usually does this time of year.