Crude Oil Price

[yyz]

Thanks...So if you had invested in oil futures Im guessing you just lost every penny you had invested?

Not necessarily. Next month is still around $22. Each month out goes a little higher. If you have shit that expires tomorrow? Yeah, you're fucked.

 

[Betone]

Not necessarily. Next month is still around $22. Each month out goes a little higher. If you have shit that expires tomorrow? Yeah, you're fucked.

Those 7 out players got crushed at the sell off, bet some people are on suicide watch...... Commodities are tough and not for the average investor. I would wait and watch the oil companies stocks, think you could get a once in a life time opportunity to buy at dirt cheap prices. Dividends payouts are nice with these oil stocks.

 

[JOSHNAUDI]

Commodities are tough and not for the average investor.

People in the commodity industries use these markets to set real prices - When Joe the Day Trader can buy futures of oil and cotton but knows that they'll never actually take possession of a barrel or bale, like people in the industry do, it ruins the nature of a market.

2008 put me out of the cotton business with an inverted run. The market ran up, farmers fixed their contracts with us at those high prices so in theory, since this is a market, we should be able to sell that cotton to a producer around the same price, plus mark up for delivery. Except the Mills said, eff that, that's not a real price, no sale. The bank called in their note and our company went out of business.

For us, it all started when day traders were able to access our trading system, called ICE, which threw the NYCE in to a spin. Before then, actual traders on the floor of the NYCE traded on the floor, afterwards, all trading was done electronically meaning anyone could buy in the market. The cotton market had a 300 limit that was in place to prevent crazy runs and crashes. If the 300 was hit, the market was shut down for a period of time, back then I believe it was the whole day. We thought the next day the market would open at the same price but thanks to all of the orders that were pending, the market moved theoretically overnight and opened at a much higher price than what we knew to be possible and then reached the day two 300 point limit to shut the market down.

From March 3-5th the market jumped ~50 cents - 5000 points. Before then we were under the impression the most it could move was 900 points over a 3 day period. We should be able to sell the cotton at a price around the futures market for delivery but these weren't real prices so farmers could set their price but we couldn't sell it to a consumer.

Here's a decent article on it - I wish WAREAGLE was around - He could write a book on those 3 days.

From - https://s.giannini.ucop.edu/uploads...14252-7440-406f-8a2e-7d0a407ae1da/v13n2_3.pdf

Futures trading is highly leveraged because traders post ?margin? typically equal to 5?10% of the futures contract value. At the end of each trading day, futures positions are ?marked to-market.? If prices move against the trader, more margin money must be posted. The amount of margin money required in ICE cotton in early March 2008 was based on volatility implied by options prices. Continued trade in options after daily price limits were hit meant that cotton merchants faced unprecedented margin calls.

The cause of the price spike is still unclear (BULLSHIT), but we do know that cash prices remained far below nearby futures. Average transacted cash prices throughout the cotton belt, normally 4?6? under nearby futures, were 25?under on March 4. Adding to the uncertainty was the elimination of floor trading for cotton futures; March 3, 2008 was the first day that ICE cotton trading was completely electronic. Anecdotal evidence suggests that commercial firms relied on information relayed by floor traders and this was lost with the move to full electronic trading.

After the spike, futures prices fell quickly to approximately 70?/lb. Subsequently,futures prices declined further, falling below 40?/lb in early November 2008.Effects on Merchants The price spike had significant, negative, and unexpected consequences for cotton merchants. Among others,three large family-owned merchants,all with a presence in California, exited the industry.

In November 2008, Weil Brothers Cotton Ltd. announced that it would cease operations in 2010.They were one the oldest cotton merchants in the United States, and were the exclusive marketing arm for California?s San Joaquin Valley Quality Cotton Association. Dunavant Enterprises announced in August of 2009 that it was holding merger talks with Allenberg Cotton, a division of Louis Dreyfus. The conclusion of this merger would combine two of the three largest cotton merchants into one firm. Both Weil Brothers and Dunavant stated that cotton trading had become riskier than in the past and that drove their exit.

 

[Handi Capper]

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..

why is diesel still hi?>

 

[The Joker]

why is diesel still hi?>

No clue.

 

[JOSHNAUDI]

so what is the downside to this?

People's jobs depend on these prices, at least, Deep in the heart of Texas, they do. I know enough Wild Catters and Roughnecks who are in the same unemployment line and it's not because of the Corona Virus

This will bring production to a halt - More layoffs.

When the price becomes profitable, Companies will start up.

When the price gets extremely high, new companies form and existing companies ramp up production.

Price gets too high, gas is $4 a gallon and Scrappy decides to drive a horse drawn rickshaw instead of the sweet van. Price then falls.

Throw in OPEC, World reserves with this production and you get an algorithm more complicated than Google's search results. I am no expert in this field but this is at least similar enough to cotton that I can tell you that I am reading opinions in this thread, not professional commodity market advice. I've seen lots of Corona opinions lately but would rely on facts provided by doctors and actual front line workers. That same advice applies to many different subjects.

The goal should be a reasonable and fair price. Normal production, normal consumption. And these Oil companies should be working towards new innovation and cleaner energy options if they wish to stay in the energy market in the future

 

[Betone]

People in the commodity industries use these markets to set real prices - When Joe the Day Trader can buy futures of oil and cotton but knows that they'll never actually take possession of a barrel or bale, like people in the industry do, it ruins the nature of a market.

2008 put me out of the cotton business with an inverted run. The market ran up, farmers fixed their contracts with us at those high prices so in theory, since this is a market, we should be able to sell that cotton to a producer around the same price, plus mark up for delivery. Except the Mills said, eff that, that's not a real price, no sale. The bank called in their note and our company went out of business.

For us, it all started when day traders were able to access our trading system, called ICE, which threw the NYCE in to a spin. Before then, actual traders on the floor of the NYCE traded on the floor, afterwards, all trading was done electronically meaning anyone could buy in the market. The cotton market had a 300 limit that was in place to prevent crazy runs and crashes. If the 300 was hit, the market was shut down for a period of time, back then I believe it was the whole day. We thought the next day the market would open at the same price but thanks to all of the orders that were pending, the market moved theoretically overnight and opened at a much higher price than what we knew to be possible and then reached the day two 300 point limit to shut the market down.

From March 3-5th the market jumped ~50 cents - 5000 points. Before then we were under the impression the most it could move was 900 points over a 3 day period. We should be able to sell the cotton at a price around the futures market for delivery but these weren't real prices so farmers could set their price but we couldn't sell it to a consumer.

Here's a decent article on it - I wish WAREAGLE was around - He could write a book on those 3 days.

From - https://s.giannini.ucop.edu/uploads...14252-7440-406f-8a2e-7d0a407ae1da/v13n2_3.pdf

Great article, Yeah I do not dabble in the commodities because I have never taken the time to learn how it works entirely. When you get to retirement you become ultra conservative, that is why I am more interested in the oil companies than the commodities. A little less volatile....... You ole "cotton picker" j/k :lol:

 

[yyz]

why is diesel still hi?>

There is still a huge demand for it.

 

[MadJack]

No clue.

Hedgehog probably knows since he face palmed OS post like he obviously knew the answer, as we all should have known, to that as well.

 

[The Joker]

Hedgehog probably knows since he face palmed OS post like he obviously knew the answer, as we all should have known, to that as well.

Well, here's a question for you that you should know the answer to.....

When NFL begins.......why is it that the Ravens will NOT win the Superbowl in 2021?

:mj07:

 

[Handi Capper]

Well, here's a question for you that you should know the answer to.....

When NFL begins.......why is it that the Ravens will NOT win the Superbowl in 2021?

:mj07:

they suck?

 

[MadJack]

Well, here's a question for you that you should know the answer to.....

When NFL begins.......why is it that the Ravens will NOT win the Superbowl in 2021?

:mj07:

:0003

 

[Betone]

Well, here's a question for you that you should know the answer to.....

When NFL begins.......why is it that the Ravens will NOT win the Superbowl in 2021?

:mj07:[/QUOTE#conan obrien #andy cohen #shit stirrer #i stir the shit

 

[Scrapman]

3 days ago i fiilled up with low price of only $2.18 per gal here in philly $22.00 past the F thats a full 14 gals now i had about 2 gals in tank

so i just drove to shop rite and back home a full 2.5 miles round trip :mj07:

BIG FUUGIN DEAL gas lowest ever in like 20 years but we caNT go anywhere.

:lol:

SO whats coming when we open up again BOOM demand goes up prices back up to $2.79 per gal

:0074

 

[Old School]

Gas Prices
Regular
$1.73

Wawa
Convenience store
Virginia Beach, VA

 

[Old School]

Roxy Gas & Snacks
Gas station
Philadelphia, PA

$2.04/Regular

Murphy Express
Convenience store
Mobile, AL

$1.39/Regular

opcorn2

Murphy Express
Convenience store
Houston, TX

$1.39/Regular

 

[JT]

How many barrels of oil do I get for a bottle of Palmolive? :shrug:

 

[hawkeye]

With my Kroger discount today I paid 79 cents a gallon.

 

[hedgehog]

Hedgehog probably knows since he face palmed OS post like he obviously knew the answer, as we all should have known, to that as well.

I live in Texas where oil and gas is king. Oil being less than 0 a barrel will cause many companies to file for bankruptcy and thousands in the unemployment line. All because some politicians made us all stay home.

 

[Wineguy]

I live in Texas where oil and gas is king. Oil being less than 0 a barrel will cause many companies to file for bankruptcy and thousands in the unemployment line. All because some politicians made us all stay home.

These type statements are what make us all wish you are the guy that should be so lucky to get the Virus, and let's see how you would fare. Maybe the 10 day variety with all the ups and downs associated with it, including some ventilator time. Wouldn't wish worse on you, that would be bad kharma, but judging by the pictures Joker posts, you might not fare too well with it in your lungs. Go to work hedgy, live your work dreams, and keep that oil pumping buddy.