Oil Prices Crash.

Holy cow. That's different.

The mind boggles how that is even possible. The forward contracting system in the US oil market must be 100% shenanigans driven.

So why aren't we being paid by the petrol station to fill up our cars?

Wouldn't this be an awesome time for the government to suddenly build a mass strategic oil storage facilities around the country to capitalise on the cheap price and sure up our reserves?

The price of Brent oil is below $20 a barrel. Some of the biggest oil trading companies in the world are now filing bankruptcy. 

The stock markets are all down 2-3%.  The reality on the ground is fast catching up with the fake financial markets.
The same is going to happen with job losses and company earnings. The reality on the ground or in financial terms main street is going to catch up to wall Street and what has happened with oil markets is going to happen with other industries. 

For example global vehicle market, housing and mass defaults on debts.  Like Virgin Air many companies are sitting on the Brink of collapse and will fail. 

Part of it is a massive drop in demand since a lot of people are staying home, not going to work, and a lot of factories are shutdown etc.

The other part is Saudi Arabia and Russia waging an economic war, they increased production during the drop in demand, to make prices fall even lower.

USA has actually become the biggest oil producer, and they get their oil mainly from fracking and shale. Which has relatively high overheads compared to Saudi Arabia and Russia. These companies have lots of debts as well. They are only profitable when prices are high. With prices this low they can’t make a profit. As their debts come due they’ll struggle and Russia/Saudis aim is for most to go bankrupt. This will leave Suadi and Russia in stronger positions with less competition.

It’s basically capitalism. Competition. Seeing an opportunity to take some players out.

Opinion: We have a fuel problem — and coronavirus has handed us an extraordinary opportunity to fix it
www.abc.net.au/news/2020-04-22/coronavirus-oil-price-fuel-security/12170390


“In the wake of the COVID-19 pandemic, global oil prices have plummeted.

US oil prices went into negative for the first time ever on Monday — at -$38 a barrel — when oil producers effectively ran out of space to store the supplies of crude oil that have not been used during the pandemic.

Australia must take advantage of this. As a nation dependent upon imported liquid fuel for more than 90 per cent of our refined fuel needs, a glut of cheap oil is a bonanza. ...”

Or buy it on the futures market in negative dollars, so they are paying us, if we can get it collected and transported.

Australia capitalises on low fuel prices to establish stockpile in US
www.abc.net.au/news/2020-04-22/government-to-buy-fuel-secure-national-stockpile/12173276

“Federal Energy Minister Angus Taylor said the Government would take advantage of historically low fuel prices to build a "strategic fuel reserve", to be held initially in the United States.

"We have full storages here in Australia, but in time we are exploring opportunities with the industry to establish local storage," he said.

.....

He said moving the storage reserve to Australia was a "priority" and that work to begin expanding domestic capacity would be done as soon as possible.....”