Quoted from cottonm4:
Ask yourself this: If no one is driving, or flying, and the fuel is not being burned, and the producers are still pumping, what is a barrel of crude worth if the SPR is full, the refineries are full, all the ships are full, and there is no place else to hide a barrel of crude.
While that is true for 'today' mine was merely a question, and hopeful optimism.
At $20BBL according to the article, IF we see $55BBL next year that would be a helluva return on investment? I know if I had funding, I'd be buying oil futures.
"Of course, the weak demand caused by the coronavirus pandemic won't last forever.
Eventually, airlines will take to the air again and start buying jet fuel. American drivers will buy more gasoline as they get back to work.
But by that point the oil industry might not be producing as much oil as before because wells shut down. Today's oil glut may suddenly turn into tomorrow's oil scarcity, pushing prices "far above" $55 next year, Goldman Sachs commodities head Jeffrey Currie said." As I asked IF we can believe the government run China news agencies, they tout they are beginning to show life?
I know the producers around here like $60BBL, so if this funk lasts only a year, we will be doing OK. It used to be $100 but beginning in 2011 we saw new operating schemes that drove that comfort level down to $60. They WILL find the next sweet spot and be able to make money. Tesla hasn't taken over the world yet.
But I'd be buying his stock too!