WTI crude just hit negative $40 a barrel
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Shorties rejoice!
CME to allow listing of negative oil options
Apr. 21, 2020 6:45 PM ET|About: CME Group Inc. (CME)|By: Carl Surran, SA News Editor
Starting tomorrow, the CME Group (NASDAQ:CME) clearing house will switch its options pricing and valuation model to accommodate negative prices in the underlying futures and allow for listing of options contracts with negative strikes, Bloomberg reports.
CME says the switch will be effective for the margin cycle run at the end of trading on April 22 and remain in place until further notice.
The move comes as the May WTI contract went below zero and June WTI is likely to see downward pressure in coming weeks amid a "violent rebalancing" in American production as storage fills up.
CME to allow listing of negative oil options
Apr. 21, 2020 6:45 PM ET|About: CME Group Inc. (CME)|By: Carl Surran, SA News Editor
Starting tomorrow, the CME Group (NASDAQ:CME) clearing house will switch its options pricing and valuation model to accommodate negative prices in the underlying futures and allow for listing of options contracts with negative strikes, Bloomberg reports.
CME says the switch will be effective for the margin cycle run at the end of trading on April 22 and remain in place until further notice.
The move comes as the May WTI contract went below zero and June WTI is likely to see downward pressure in coming weeks amid a "violent rebalancing" in American production as storage fills up.
Glad you made out well , but I suppose you will need that extra , to pay for bread , milk and steaks ....
This is an insane tweet a family member sent me several weeks ago. Can’t quite wrap my brain around this considering there’s no gold backing the dollar anymore. But we print it like it’s newspaper and the value goes...UP?
Europe is screwed, flight to safety, they were in recession BEFORE covid-19. How is Italy gonna not default?, which is another can of whoop ass on the world economy.
Why do I have a feeling after the aftermath we will have a global dollar?
I’ve heard 2023 til it gets back to another boom
Crude going negative is a joke. It is a structural issue and if the exchange wont fix it, why on earth would you still want to go there? In my opinion, almost every listed contract has structural issues that need to be addressed. The dollar is stronger because debt is all relative to GDP, and your trading partners needing a stable currency. Look no farther than Japan and its debt history, as well as long term low interest rates. As to Italy, all the Pigs have been out of the news because with negative interest rates in Europe, no one has to make a minimum payment. I'm simplifying it to credit card terms, but if you got a zero interest rate credit card, as long as the rate stays at zero, and the lender does not try to collect, you don't have a monthly payment, and your debt isn't increasing, as long as you don't go back to the tit. Stock market should go up if the dollar really devalues, but against the rest of the world, we are the most prudent even now with debt, so its really being supported by others globally wanting return of capital over return on capital. Look at Argentina as an easy example. I believe what has fuelled the Trump rally in the Dow has been significantly low unemployment, with all those 401K contributions by the working class. That money flow is gone for the foreseeable future.
thats bs. oil is never bottomed out like this. once this virus shit clears up people will start driving again. oil will rebound again with 12 months, I promise you. Buy now and make money. I'll eat crow if it doesn't bounce, as I'm invested.
the US would never let that happen
They are already pulling biblical BS about chipping people!
they can chip my ball sack and stare at my barrel end hahahaha
I mean I agree.
but nobody has seen this before.. so they are just preparing for the worst it seems
Also while Halliburton is still cheap I’d get them
they will be around forever
they will be around forever
i agree
Oasis Petroleum to halt all Bakken drilling within weeks - Reuters
Apr. 29, 2020 3:53 AM ET|About: Oasis Petroleum Inc. (OAS)|By: Carl Surran, SA News Editor
Oasis Petroleum (NASDAQ:OAS) has begun to wind down drilling in North Dakota's Bakken shale and will completely halt all drilling activity in the play within weeks, Reuters reports.
Oil producers across the U.S. have scrambled to cut production, and shut-ins have been particularly swift in North Dakota, which produced more than 1.4M bbl/day of oil in 2019.
Large operators, including Continental Resources, North Dakota's largest oil producer, have halted production in the state and notified some customers it would not be able to supply crude.
Oil bounces as Goldman starts to see positives in energy sector
Apr. 29, 2020 1:55 AM ET|About: Crude Oil Futures (CL1:COM)|By: Carl Surran, SA News Editor
Crude oil prices climb (CL1:COM) after a report from the American Petroleum Institute showed a smaller-than-expected U.S. crude inventory build; WTI for June delivery +14.1% to $14.08/bbl, while Brent +4.1% to $21.31/bbl.
The API data showed U.S. crude inventories rising by nearly 10M barrels in the week to April 24, but that was below the prior week's 13.2M-barrel build and short of analyst expectations of a build of 10.6M barrels.
Also, Russian Energy Minister Alexander Novak reportedly said the country's oil output could fall by up to 15% this year, which would mark its first annual decline since 2008.
Oil prices yesterday swung between gains and losses as investors continue to watch depleting crude storage space and demand destruction from the coronavirus outbreak.
Energy was the only stock market sector to finish higher last week despite the plunge in WTI crude, and the sector has continued to outperform the broader market so far this week.
Goldman Sachs highlights a number of reasons why it is more positive on energy stocks, saying demand appears to be near a trough, shut-in announcements are becoming material, and valuation is near 25-year lows on EV/gross cash invested.
Apr. 29, 2020 3:53 AM ET|About: Oasis Petroleum Inc. (OAS)|By: Carl Surran, SA News Editor
Oasis Petroleum (NASDAQ:OAS) has begun to wind down drilling in North Dakota's Bakken shale and will completely halt all drilling activity in the play within weeks, Reuters reports.
Oil producers across the U.S. have scrambled to cut production, and shut-ins have been particularly swift in North Dakota, which produced more than 1.4M bbl/day of oil in 2019.
Large operators, including Continental Resources, North Dakota's largest oil producer, have halted production in the state and notified some customers it would not be able to supply crude.
Oil bounces as Goldman starts to see positives in energy sector
Apr. 29, 2020 1:55 AM ET|About: Crude Oil Futures (CL1:COM)|By: Carl Surran, SA News Editor
Crude oil prices climb (CL1:COM) after a report from the American Petroleum Institute showed a smaller-than-expected U.S. crude inventory build; WTI for June delivery +14.1% to $14.08/bbl, while Brent +4.1% to $21.31/bbl.
The API data showed U.S. crude inventories rising by nearly 10M barrels in the week to April 24, but that was below the prior week's 13.2M-barrel build and short of analyst expectations of a build of 10.6M barrels.
Also, Russian Energy Minister Alexander Novak reportedly said the country's oil output could fall by up to 15% this year, which would mark its first annual decline since 2008.
Oil prices yesterday swung between gains and losses as investors continue to watch depleting crude storage space and demand destruction from the coronavirus outbreak.
Energy was the only stock market sector to finish higher last week despite the plunge in WTI crude, and the sector has continued to outperform the broader market so far this week.
Goldman Sachs highlights a number of reasons why it is more positive on energy stocks, saying demand appears to be near a trough, shut-in announcements are becoming material, and valuation is near 25-year lows on EV/gross cash invested.
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