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Another oil glut? What gives?

BULL

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Bowtie Guy

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Thread Starter #3
But we were seeing increasing fuel prices before the ship tried to be a truck.
 

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Biden
 

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#5
Biden likes to hand out vote money like Canada s sexy leader

Sort of like Robin Hood

1617218985833.png
 

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#6
Some of the trickle down from Texas freezing, refineries were shut down, good excuse to raise prices.
You notice they are quick to rise, but take forever to come down...that way the oil tycoons can keep their pockets lined.
 

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#7
Yea, I agree, It’s Joe Blowdins’ doings
 

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#8
I agree with the above it's also general inflation. All that money printing by the FED and government borrowing has to create an inflationary impact in the economy.
 

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Yep it's all Biden's fault. It has zero to do with the artificially low gas prices we were seeing.
Russia and Saudi with their over production of oil helping the price drop.
Then all of a sudden the world pretty much stopped. The barrel of oil was $-13 usd at one point last year.
Late last year both Saudi and Russia stopped f'ing around and cut production.
Now with the vaccine rolling out pretty well the a holes that speculate that we will need more are driving the price up. Add in the production issues from Texas due to the storms and here we go, let's drive the price up more. Not all reasons but some big ones.
If there is so much oil bought cheap wtf are we paying prices for stuff not even bought yet. Worse the stuff that was almost free.


But none of that makes any sense.
Let's give Trump the credit for low prices and blame Biden for the upswing. That is what makes most here warm and fuzzy I guess.🤷

Oil prices have pissed me off for years.
The barrel is at what about $70+/- and I gassed my truck up today at $1.38 a liter.
Multiply by 3.78 for a US gallon.
When oil was $150+ a barrel gas was $1.55/liter. Hell I paid today the same as in the past when oil was over $100usd.

In typical fashion now that the price is up it won't drop again until they go through reserves they bought so cheap they don't know where to put it. Assholes.

This is way beyond aborted pipelines or aborted future drilling in protected lands and waters.
 

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#10
Yep it's all Biden's fault. It has zero to do with the artificially low gas prices we were seeing.
Russia and Saudi with their over production of oil helping the price drop.
Then all of a sudden the world pretty much stopped. The barrel of oil was $-13 usd at one point last year.
Late last year both Saudi and Russia stopped f'ing around and cut production.
Now with the vaccine rolling out pretty well the a holes that speculate that we will need more are driving the price up. Add in the production issues from Texas due to the storms and here we go, let's drive the price up more. Not all reasons but some big ones.
If there is so much oil bought cheap wtf are we paying prices for stuff not even bought yet. Worse the stuff that was almost free.


But none of that makes any sense.
Let's give Trump the credit for low prices and blame Biden for the upswing. That is what makes most here warm and fuzzy I guess.🤷

Oil prices have pissed me off for years.
The barrel is at what about $70+/- and I gassed my truck up today at $1.38 a liter.
Multiply by 3.78 for a US gallon.
When oil was $150+ a barrel gas was $1.55/liter. Hell I paid today the same as in the past when oil was over $100usd.

In typical fashion now that the price is up it won't drop again until they go through reserves they bought so cheap they don't know where to put it. Assholes.

This is way beyond aborted pipelines or aborted future drilling in protected lands and waters.
Oil is a commodity like Wheat, Corn, etc. Futures market is not to blame. People enter into Futures contracts to hedge their risk. A buyer and a seller agree on a price and quantity for some time period into the future...3 months, 6 months, 1 year, etc. These are legally binding contracts. When the Global pandemic took hold Futures contract holders still had to honor their agreements. Storage problems were an issue and that is why the spot market went negative because no one wanted to buy those futures contracts. We are coming up on 1 year since pandemic started so a lot of the pre-COVID Futures contracts are finishing up. With storage costs, etc. adding up I'm sure that is flowing through increasing oil spot prices.

Current administration's policies will result in higher oil prices. Policies may not have caused bulk of increase but will certainly keep them higher as demand normalizes. We shall see...
 

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#11
The Greenies are now in charge and the goal is to drive the Ice Age well into uhm Ice Age😁. The movement to abandon the Fossil Fuels is the Goal and to force change. Change usually happens by market forces and consumer demands......etc. The anti American drilling for fuel is the New Democratic Party favor which in turn can impact world market perception. I am in the Gas Station industry business and can tell you the Pandemic has ruined many gas stations. I have witnessed more than ever in the 30 plus years of being in the industry a huge amount of closures of gas stations. The small one store owners are out and the stations with 6-10 stations takes them over. Most station owners are a solid 25% to as much 40% percent down month over month since the pandemic started. The fuel consumption is down by huge numbers due to the Pandemic. If you look at the roads they are empty in comparison to normal times during rush hour. The metro buses, metro trains, Air line travel, Cruise ships.......etc etc etc are way down as well. Most of the gas station owners agree the past fuel consumption may never return. The work from home is a huge hit for the transportation industry. I could go on and on of all the variables the Pandemic has caused and I am personally witnessing is beyond what you will read and or hear from the general media. Foreclosures of businesses and loss of business is bigger than most know. Repossessions of cars is at an all time high. And with all the loss of fuel sales and less transportation why has fuel spiked since the change of administration? And yes I get the variables that drive markets but you have to wonder why the price increases which are border line artificially inflated. The real story will become more clear 1st quarter 2022 since Fannie Mae Freddie Mac backed mortgages are on hold for house payments. If you have one of these Government backed mortgages you do not have to make a mortgage payment. People have been giving extensions of no payments now going on 1 year. Presently their are 10-12 million homes in foreclosure status that due to Covid Pandemic guidelines cannot be foreclosed on. I could go on and on of all the Economic Collapse scenarios that are on our doorstep but continue to be pushed off by the pandemic. The real eye opener is next year which yeh the $10-$20 barrel of oil will be back since the country is on an economic collapse.
 
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#12
Oil is a commodity like Wheat, Corn, etc. Futures market is not to blame. People enter into Futures contracts to hedge their risk. A buyer and a seller agree on a price and quantity for some time period into the future...3 months, 6 months, 1 year, etc. These are legally binding contracts. When the Global pandemic took hold Futures contract holders still had to honor their agreements. Storage problems were an issue and that is why the spot market went negative because no one wanted to buy those futures contracts. We are coming up on 1 year since pandemic started so a lot of the pre-COVID Futures contracts are finishing up. With storage costs, etc. adding up I'm sure that is flowing through increasing oil spot prices.

Current administration's policies will result in higher oil prices. Policies may not have caused bulk of increase but will certainly keep them higher as demand normalizes. We shall see...
I am aware of how it works. Hence the assholes speculating about pricing.
Just tried to make it simple.

As for the current administration having some effect on sustaining some of the higher prices.
By not allowing new drilling on protected land and waters.
I can live with that. But I must be alone because who needs clean water and why would we want to protect land that is habitat to whatever endangered whatever living there.
Why should the Arctic wildlife refuge need oil and gas exploration? Or why the Tongass forest should remain a protected forest?
I'm not exactly an environmentalist by any means but we have learned a thing or two over the years.

Maybe start doing something about the roughly 3million abandoned oil and gas wells in the US of which about 2/3 aren't even capped before f'ing up more places.
You know the equivalent cleaning up after yourself. So the protected land will be treated differently?
The pipeline well I can't say much as they don't want one running across our country to get it to our own refineries.
The pipeline wouldn't keep the price of fuel down by that much in the US anyways.
First our oil is expensive to get out of the ground. The price of oil now finally is around break even. Then the oil would cost more to refine because it isn't exactly the cleanest.
Yes savings in transport but then how much is offset by inspections and maintenance much of which is in the middle of nowhere pretty much.

None of this changes the fact that a great many think Trump deserves the credit for the low gas prices. Then in turn blame Biden for it going up.
I was simply trying to point out that there is way more going on than just political policies of the US Gov't.
 

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#13
I am aware of how it works. Hence the assholes speculating about pricing.
Just tried to make it simple.

As for the current administration having some effect on sustaining some of the higher prices.
By not allowing new drilling on protected land and waters.
I can live with that. But I must be alone because who needs clean water and why would we want to protect land that is habitat to whatever endangered whatever living there.
Why should the Arctic wildlife refuge need oil and gas exploration? Or why the Tongass forest should remain a protected forest?
I'm not exactly an environmentalist by any means but we have learned a thing or two over the years.

Maybe start doing something about the roughly 3million abandoned oil and gas wells in the US of which about 2/3 aren't even capped before f'ing up more places.
You know the equivalent cleaning up after yourself. So the protected land will be treated differently?
The pipeline well I can't say much as they don't want one running across our country to get it to our own refineries.
The pipeline wouldn't keep the price of fuel down by that much in the US anyways.
First our oil is expensive to get out of the ground. The price of oil now finally is around break even. Then the oil would cost more to refine because it isn't exactly the cleanest.
Yes savings in transport but then how much is offset by inspections and maintenance much of which is in the middle of nowhere pretty much.

None of this changes the fact that a great many think Trump deserves the credit for the low gas prices. Then in turn blame Biden for it going up.
I was simply trying to point out that there is way more going on than just political policies of the US Gov't.
Good points and agree about the value of keeping our country cleaner and safer. And believe it or not I have been in the Oil Industry since 1985 and have witnessed a lot of change for the better. Even though no doubt the Government involvement has been at some times irritating but overall its been better for all involved. The one thing that has always puzzled me is if the Oil reserves are so special and border line rarer than say a hundred years ago than why deplete your own? Meaning I have always preached let's let the other countries drain their oil fields and let us keep ours for the last to used up. The value of oil for sure will change as alternative energy advances but at the same time lets let the Middle East run their oil fields dry while we keep ours full. In the end who played the world market manipulation better them or us. And yeh I get it its a fine balance for world market trade to help one another versus harm one another. The true picture of the future of the oil industry will not be what it is today 20-50 years from now. Most major oil companies are downsizing their global foot print for oil exploration and investments are being used for the alternative energy. Summing it up we as the end users of the Ice Age will eventually be forced to new transportation which I would not look as the end of our fun time behind the wheel of a fast moving thrill.
 

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#14
I am aware of how it works. Hence the assholes speculating about pricing.
Just tried to make it simple.

As for the current administration having some effect on sustaining some of the higher prices.
By not allowing new drilling on protected land and waters.
I can live with that. But I must be alone because who needs clean water and why would we want to protect land that is habitat to whatever endangered whatever living there.
Why should the Arctic wildlife refuge need oil and gas exploration? Or why the Tongass forest should remain a protected forest?
I'm not exactly an environmentalist by any means but we have learned a thing or two over the years.

Maybe start doing something about the roughly 3million abandoned oil and gas wells in the US of which about 2/3 aren't even capped before f'ing up more places.
You know the equivalent cleaning up after yourself. So the protected land will be treated differently?
The pipeline well I can't say much as they don't want one running across our country to get it to our own refineries.
The pipeline wouldn't keep the price of fuel down by that much in the US anyways.
First our oil is expensive to get out of the ground. The price of oil now finally is around break even. Then the oil would cost more to refine because it isn't exactly the cleanest.
Yes savings in transport but then how much is offset by inspections and maintenance much of which is in the middle of nowhere pretty much.

None of this changes the fact that a great many think Trump deserves the credit for the low gas prices. Then in turn blame Biden for it going up.
I was simply trying to point out that there is way more going on than just political policies of the US Gov't.
There's no place for realistic, fact-based perspectives here on such topics; that should be quite apparent.

The "explanation" of the Futures market was about as realistic and accurate as the knee-jerk "...but the dealer has to comply with the Magnusson Moss Act..." response to warranty questions. Yea, maybe on paper, but what will it cost you to force them to comply?

The Futures market is just as susceptible to manipulation as any other financial market. There are those who try to read the future's "tea leaves", then there are those who watch the former and try to game the system to counter their moves in order to make a profit for themselves. And so on...and so on...
 

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#15
There's no place for realistic, fact-based perspectives here on such topics; that should be quite apparent.

The "explanation" of the Futures market was about as realistic and accurate as the knee-jerk "...but the dealer has to comply with the Magnusson Moss Act..." response to warranty questions. Yea, maybe on paper, but what will it cost you to force them to comply?

The Futures market is just as susceptible to manipulation as any other financial market. There are those who try to read the future's "tea leaves", then there are those who watch the former and try to game the system to counter their moves in order to make a profit for themselves. And so on...and so on...
[The "explanation" of the Futures market was about as realistic and accurate as the knee-jerk ".]

Futures are created by industry to hedge risk...whether it be currency, oil, agriculture, etc. The speculating is done in the secondary markets until a contracts expiration date (delivery date). That is how markets work and stay fluid.

Do tell us how that market really works?
 
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Thread Starter #16
:mad:
 

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Greta, Biden, Trudeau, and all the rest of the left wing communists are why gas prices, and many other items have skyrocketing prices, it isn't difficult to figure out.
 

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