Now energy prices and stocks are tanking

[SlugSlinger]

"Historic" oil price war sends crude into downwards spiral
Mar. 08, 2020 5:31 PM ETThe United States Oil ETF, LP (USO)By: SA Eli Hoffmann, SA News Editor21 Comments

• Oil markets fell the most since 1991 after the disintegration of the OPEC+ alliance looks set to trigger an all-out price-war. Crude futures dropped almost 30% seconds after the open, following last week's massive losses.
• The causes: a collapse in demand due to the coronavirus, exacerbated by an all-out price war after the Saudis slashed official prices Saturday by the most in at least 20 years, and signaled they would maximize output.
• “What makes this price war especially dangerous and historic is it breaks out simultaneously with a massive demand shock… from the coronavirus. “We have not seen that toxic combination since the early 1930s when [Texas’] monster Black Giant field started up in the teeth of the Depression, sending crude oil prices down to pennies on the barrel,” Robert McNally, president of Rapidan Energy Group, a Washington, D.C.-based energy-market consulting firm, said.
• “It’s certainly a high-risk, high-stakes approach,” economist Tim Fox said. “The oil-price weakness is looking likely to extend and steepen, probably in coming weeks and months, unless there is some policy coordination to bring that to an end.”
• But the end-game here is not low oil prices, but rather forcing Russia back to the negotiating table. The question is how long - if at all - that will take. "We would stress that it is not in any OPEC+ nations' interest to have sustained oil prices below US$50, and hence we see this solely as a strategic move from the Saudis," RBC says.
• In currencies, the yen jumped to its strongest level since 2016, while the Loonie and Krone dropped heavily. Copper futures are down 3.8% to a multi-year low, while gold is up 1.4% and again flirting with $1,700.
• Japan will release Q4 GDP on Monday, among other numbers. The data will likely indicate that Japan's economy was under stress prior to the coronavirus outbreak. Conversely, the Nikkei's 0.3% exposure to energy, vs. the S&P's 3.3%, MSCI Europe's 5.8%, and Shanghai's 6.2% could make it a relative safehaven.
• Expect more volatility as markets open across the globe.

 

[ZombieHunter]

My company is ONG. Well, Onegas. We own ONG, Texas Gas Service and Kansas Gas Service. Most people don’t know that. They think it’s just ONG. We are the third largest 100% regulated natural gas utility in the nation. I am sure things will rebound. This corona virus deal won’t last forever. But, it’s definitely scary being publicly traded.

Coronavirus could very well be around for a minimum of 2 years, to think it won't stick around for awhile is short sighted, almost as short sighted as the US response to it has been. This thing has 28 day mother ******* incubation periods, and asymptomatic super carriers. This is ridiculous at this point. They aren't testing people who DO NOT HAVE SYMPTOMS, with a virus that has asymptomatic super carriers.......You can't make up that kind of stupid.


Every man woman and child alive needs to be tested at this point, and we only have supposedly 1,000,000 tests in the WHOLE of the USA, you think it's just gonna disappear? Sweet lord are a majority of people functionally mathematically dunce?

 

[Fredkrueger100]

Coronavirus could very well be around for a minimum of 2 years, to think it won't stick around for awhile is short sighted, almost as short sighted as the US response to it has been. This thing has 28 day mother ******* incubation periods, and asymptomatic super carriers. This is ridiculous at this point. They aren't testing people who DO NOT HAVE SYMPTOMS, with a virus that has asymptomatic super carriers.......You can't make up that kind of stupid.


Every man woman and child alive needs to be tested at this point, and we only have supposedly 1,000,000 tests in the WHOLE of the USA, you think it's just gonna disappear? Sweet lord are a majority of people functionally mathematically dunce?

You sound like my cousin. Paranoid. I ain’t worried about it. I guess your an expert on the virus too. I’m not dunce at all, I’m just not the type that overreacts and makes huge deals out of things. You know, if this virus kills us all then good. I get to go to heaven all the sooner. You would make a good “analyst” on CNN.

 

[filbert]

That it is. Jobs in the oil patch are hard to come by now.
It’s a great time for consumers but crap time for oil field workers.

If this lasts very long it will shut fracking down, way to expensive for this cheap oil. Just think if Libya, Iran, Syria, Iraq, and Venezuela, were all pumping oil, oil would be below $35 a barrel.

 

[ZombieHunter]

You sound like my cousin. Paranoid. I ain’t worried about it. I guess your an expert on the virus too. I’m not dunce at all, I’m just not the type that overreacts and makes huge deals out of things. You know, if this virus kills us all then good. I get to go to heaven all the sooner. You would make a good “analyst” on CNN.

You know how many Chinese travel back to China for Lunar New Year, it is estimated to be 350,000,000 people, who travel to China and then back to home countries. Let's conservatively estimate that only 10% are carriers, that is 35,000,000 people who potentially pass the virus on to at minimum 1-3 people. Even if it's only 1 person each vector, that still doubles the infected worldwide to 70,000,000.

Many of these people WON'T SHOW A SYMPTOM. You are insane if you think I am paranoid, I just think most people can't do math.

 

[filbert]

This has nothing to do with the virus, if you read OPEC could not get Russia to cut oil production so the price keeps going lower. Russia is in the drivers seat and its payback time for them. Lot more here them the virus.

 

[JD8]

You know how many Chinese travel back to China for Lunar New Year, it is estimated to be 350,000,000 people, who travel to China and then back to home countries. Let's conservatively estimate that only 10% are carriers, that is 35,000,000 people who potentially pass the virus on to at minimum 1-3 people. Even if it's only 1 person each vector, that still doubles the infected worldwide to 70,000,000.

Many of these people WON'T SHOW A SYMPTOM. You are insane if you think I am paranoid, I just think most people can't do math.

No you're paranoid. What's worse is that your stupidity and hysteria you're spreading is worse than the virus.

I can't wait to revisit this thread a year from now.

FWIW, the only country that had down legit widespread testing is South Korea. They are showing a fatality rate that is less than the Flu.


https://www.businessinsider.com/south-korea-coronavirus-testing-death-rate-2020-3

It's honestly a no brainer that we have no idea of true infection rates. Consider your "asymptomatic" hysteria....(which you can transmit the flu asymptomatically as well)...if this is true then the fatality rate would have to drop significantly using common sense and basic math.

 

[Aries]

My company is ONG. Well, Onegas. We own ONG, Texas Gas Service and Kansas Gas Service. Most people don’t know that. They think it’s just ONG. We are the third largest 100% regulated natural gas utility in the nation. I am sure things will rebound. This corona virus deal won’t last forever. But, it’s definitely scary times.

There is absolutely no question that OGS will rebound, the only question is how long it will take. Unless you are retired, just keep telling yourself that you are BUYING right now.

 

[ZombieHunter]

No you're paranoid. What's worse is that your stupidity and hysteria you're spreading is worse than the virus.

I can't wait to revisit this thread a year from now.

FWIW, the only country that had down legit widespread testing is South Korea. They are showing a fatality rate that is less than the Flu.


https://www.businessinsider.com/south-korea-coronavirus-testing-death-rate-2020-3

It's honestly a no brainer that we have no idea of true infection rates. Consider your "asymptomatic" hysteria....(which you can transmit the flu asymptomatically as well)...if this is true then the fatality rate would have to drop significantly using common sense and basic math.

We shall see. I can tell you Americans likely thought the same during the spanish flu, that didn't turn out so well for them.

 

[SlugSlinger]

2020-03-08 08:29:22 EDT
***Bulletin: Spectacular Sell-Off Takes Futures to Four Year Lows

The Sunday evening futures market opening was one of the most anticipated
openings in recent memory and the expectations of a collapse in oil and refined
products prices from weekend events met expectations.

After no agreement was reached at the OPEC+ meeting in Vienna last week the
market responded with aggressive selling on Friday. But now the market share
battle has ramped up in what appears to be a war for market share between
Russia and Saudi Arabia has sent futures traders to the exits.

Reports indicate very aggressive prices from Saudi Arabia for their official
selling price in April. Besides the standoff between the two producing nations,
concerned about the global economy and demand in response to coronavirus
disease 2019 (COVID-19) is putting significant pressure on markets.

There already appeared to be a couple of trading halts on Sunday evening as
losses triggered circuit breakers and with that some two-minute halts to
trading.

At its low point, NYMEX April WTI traded down to $30/bbl, but at 8:05 PM
Eastern the April contract had somewhat recovered and was trading at $32.43/bbl
a loss of $8.83. The $30/bbl low for WTI represents the lowest trade since
February 22nd 2016. ICE May Brent crude oil is behaving similarly trading as
low as $31.02/bbl this evening. Like WTI, the lows in Brent haven't been seen
in more than four years. At 8:10 PM Eastern, front month Brent was trading at
$36.04/bbl a loss of 9.23/bbl.

RBOB and ULSD at their lows were off more than 25cts and with such a drastic
dive in prices most marketers are waiting for rack prices to reset before
sending trucks out to the terminals.

"You won't see a truck loading at the racks tonight," one marketer said.

At 8:15 PM eastern April RBOB was trading at $1.1605/gal a loss of 22.85cts
after trading as low as $1.1225/gal. Meanwhile ULSD bottomed at $1.1305 /gal
and has since recovered to $1.1738/gal a los of 21.14cts/gal.

Cash markets are likely to fall under significant pressure tomorrow based on
Sunday evening indications.

While jet fuel appears to be the product with the most downward potential
considering flight cancellations and cuts to service, OPIS opening indications
for Chicago CBOB are hovering around $1/gal on Sunday evening.