What's on your shopping list

[MacrcoPolo]

For the best part of this month I've been wanting to fill my trolley with oil, an article by Yahoo finance says some are predicting $10 a barrel & if it gets there I plan to put as much as possible into the trolley, out of curiosity, and I'm sure people in this forum are savvy enough to have found some value, what's on your shopping lists.

Oil is an extremely risky buy right now - flat price is cheap but your cost of carry based on curve shape is more like 6$/month at the moment. You will get your eyes gauged out if the market continues to roll down to $20 on front month as it has for April and may expires.

[jamesg46]

For the best part of this month I've been wanting to fill my trolley with oil, an article by Yahoo finance says some are predicting $10 a barrel & if it gets there I plan to put as much as possible into the trolley, out of curiosity, and I'm sure people in this forum are savvy enough to have found some value, what's on your shopping lists.

Oil is an extremely risky buy right now - flat price is cheap but your cost of carry based on curve shape is more like 6$/month at the moment. You will get your eyes gauged out if the market continues to roll down to $20 on front month as it has for April and may expires.

I completely left it alone, I soon realised that me buying anything was pure speculation with no direction. I dont know how the market works or how it charges so I invested in education instead.

[wearthefoxhat]

For the best part of this month I've been wanting to fill my trolley with oil, an article by Yahoo finance says some are predicting $10 a barrel & if it gets there I plan to put as much as possible into the trolley, out of curiosity, and I'm sure people in this forum are savvy enough to have found some value, what's on your shopping lists.

Oil is an extremely risky buy right now - flat price is cheap but your cost of carry based on curve shape is more like 6$/month at the moment. You will get your eyes gauged out if the market continues to roll down to $20 on front month as it has for April and may expires.

I completely left it alone, I soon realised that me buying anything was pure speculation with no direction. I dont know how the market works or how it charges so I invested in education instead.

No one knows the direction anything will go in, it's all speculation. Don't let anyone say they do.

That said, Warren Buffetts' wisdom of losing or dealing with a draw down, is worth repeating.

losing.jpg

[jamesg46]

Oil is an extremely risky buy right now - flat price is cheap but your cost of carry based on curve shape is more like 6$/month at the moment. You will get your eyes gauged out if the market continues to roll down to $20 on front month as it has for April and may expires.

I completely left it alone, I soon realised that me buying anything was pure speculation with no direction. I dont know how the market works or how it charges so I invested in education instead.

No one knows the direction anything will go in, it's all speculation. Don't let anyone say they do.

That said, Warren Buffetts' wisdom of losing or dealing with a draw down, is worth repeating.


losing.jpg

You have to love Warren & Charlie. I've often used a Warren quote when talking to friends, I'll explain to them where it came from.... blank faces, every time. It amazes me that some people have no idea who he is.

[wearthefoxhat]

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Normal service resumed...

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[gunnerryan]

Is it time to get in on WTI Crude Oil?

34 year low, down approx 40%. Drip buy?

[superfrank]

WTI extends decline to 40%, Canadian physical oil goes negative
https://www.forexlive.com/news/!/wti-ex ... e-20200420

So you can get paid to take crude off the hands of some Canadian producers!

WTI May contract went sub-$5... https://www.cmegroup.com/trading/energy ... crude.html.

[superfrank]

It's difficult to keep up with this. Epic crash. May WTI went NEGATIVE $40!

[jamesg46]

It's difficult to keep up with this. Epic crash. May WTI went NEGATIVE $40!

What's more worrying is the reaction to it.

[superfrank]

How did you end up with negative oil prices today? This happens when a physical futures contract find no buyers close to or at expiry.

Let me explain what that means:

A physical contract such as the NYMEX WTI has a delivery point at Cushing, OK, & date, in this occurrence May. So people who hold the contract at the end of the trading window have to take physical delivery of the oil they bought on the futures market. This is very rare.

It means that in the last few days of the futures trading cycle, (which is tomorrow for this one) speculative or paper futures positions start rolling over to the next contract. This is normally a pretty undramatic affair.

What is happening today is traders or speculators who had bought the contract are finding themselves unable to resell it, and have no storage booked to get delivered the crude in Cushing, OK, where the delivery is specified in the contract.

This means that all the storage in Cushing is booked, and there is no price they can pay to store it, or they are totally inexperienced in this game and are caught holding a contract they did not understand the full physical aspect of as the time clock expires.

The contract roll and liquidity crunch that made the extreme sell-off today possible but it DOESN’T necessarily represent futures market conditions: NYMEX June settled today at $21.13.

The June contract is not out of the woods either: today’s action indicate that physical oil markets at Cushing are not in good shape and that storage is getting very full.

https://www.zerohedge.com/markets/here- ... tive-price