Oil arbitrage

Discussion in 'Economics' started by Krent Birshner, Apr 20, 2020.

  1. SunTrader

    SunTrader

    Refineries work on a margin basis. Lower price = lower margin = lower profits.
     
    #51     Apr 20, 2020
  2. They should give it for free, because to hold it will be even expensive.
     
    Last edited: Apr 20, 2020
    #52     Apr 20, 2020
  3. Yes, therefore I surprised why it holds the price, even was green at time to time.
     
    #53     Apr 20, 2020
  4. Amun Ra

    Amun Ra

    Crack spread right now is pretty high with the drop. .71 cent gas and $5 oil = about $24 spread. Heating oil is better at .91 cents which equals $33. Those are pretty decent assuming gas and heating oil doesn't drop.
     
    #54     Apr 20, 2020
  5. SunTrader

    SunTrader

    Baltic Clean Tanker Index

    Rising not so much because oil is being transported to its destination but because a lot of tankers are now being used as storage.

    chart.png
     
    #55     Apr 20, 2020
  6. FrankInLa

    FrankInLa

    Guys, who still does not get it that it will go to zero by Tuesday? It's the may contract on which the current CFDs are still based on (the ones trading view shows, for example) . Also spot prices go close to zero because World storage capacity is REACHED. Are some reading delayed news feeds or what is going on?
     
    #56     Apr 20, 2020
  7. SunTrader

    SunTrader

    Yes but that is right now. "Things change" and anyway right now today refiners are working off older prices.
     
    #57     Apr 20, 2020
  8. SunTrader

    SunTrader

    CFD's traders don't get it. Futures rule. Traders go where the money is.
     
    #58     Apr 20, 2020
  9. FrankInLa

    FrankInLa

    Its irrelevant. World storage capacity has been exhausted. Any additional barrel of oil that can't be consumed or stored is worthless. Less than worthless, it costs money to dispose of or even more money to shut down certain types of wells.

     
    #59     Apr 20, 2020
  10. Amun Ra

    Amun Ra

    How long before they're paying people to use their swimming pools to store oil?
     
    #60     Apr 20, 2020