I don't think it was speculators thinking the oil price was too high. It was that nobody wanted to take delivery on a contract expiring that day, partly because there wasn't any space at the Oklahoma storage facility to take delivery, which presents a massive storage problem. The price promptly returned to its previous level the next day, even within that day, I think. -$40/barrel was panic, not speculators pushing prices down.
(Not only does one not want to take delivery of a commodity unless you are actually using it, but I think crude oil gives off hydrogen sulfide, which is poisonous in small quantities, making storage even more problematic)
This was what happened, and why you heard people saying things like 'I've got some barrels in my garage we could use.'
I reiterate that not once ever have gas/oil speculators lowered prices because they went too high, but they damn sure froze prices when they thought they were dipping too low.
I seem to remember people saying back when it 'dipped too low' (speculators'/tycoons' words) that they most certainly would retard prices if they went too high. They pinky-double-scouts'-honor swore.
Never happened. Especially scummy because oil prices affect everything.
I believe it was late 90s, the last time gas dipped to $1/gal and below. It didnt last but a few days but to hear the oil companies cry it was the end of times and they were going bankrupt.
As an aside has anyone seen the Dubai videos of the children of these tycoons getting bored and racing/flipping/destroying $500k+ cars? If not search Saudi super car stunts/flips/races/wheelies/crashes/whatever.
Obviously oil prices are priced accurately and the companies/families that own them are making the slimmest of margins, we should cut them slack- oh wait, that's every business now.
prewett|4 years ago
(Not only does one not want to take delivery of a commodity unless you are actually using it, but I think crude oil gives off hydrogen sulfide, which is poisonous in small quantities, making storage even more problematic)
effingwewt|4 years ago
I reiterate that not once ever have gas/oil speculators lowered prices because they went too high, but they damn sure froze prices when they thought they were dipping too low.
I seem to remember people saying back when it 'dipped too low' (speculators'/tycoons' words) that they most certainly would retard prices if they went too high. They pinky-double-scouts'-honor swore.
Never happened. Especially scummy because oil prices affect everything.
I believe it was late 90s, the last time gas dipped to $1/gal and below. It didnt last but a few days but to hear the oil companies cry it was the end of times and they were going bankrupt.
As an aside has anyone seen the Dubai videos of the children of these tycoons getting bored and racing/flipping/destroying $500k+ cars? If not search Saudi super car stunts/flips/races/wheelies/crashes/whatever.
Obviously oil prices are priced accurately and the companies/families that own them are making the slimmest of margins, we should cut them slack- oh wait, that's every business now.
I hate what humanity has become.