US crude oil has traded at negative prices for the first time in history, with demand for energy collapsing amid the coronavirus pandemic.
The benchmark price for US crude plummeted to negative $US35.20 a barrel as traders sought to avoid owning crude with nowhere to store it.
The price had been nearly $US60 at the start of the year, before shutdown orders swept the world and stopped the operation of factories, offices and cars.
Demand for oil has collapsed so much that facilities for storing crude are nearly full.
Old and Grey said
09:27 AM Apr 21, 2020
Good morning Dorian,
So in summary where does this place Australia in terms of fuels at the pump. Buy, Hold on and wait. We saw fuel prices on the news below 80 cents per litre.
not seen since 2000.
Old
PeterInSa said
09:51 AM Apr 21, 2020
Paid 73.9c/Lt last week in Adelaide
Whenarewethere said
09:58 AM Apr 21, 2020
It would be an opportunity for Australia to pull our head out of the sand to catch up & stockpile fuel to the international standard on 90 days reserves. Currently we are at 9 days!
dogbox said
10:20 AM Apr 21, 2020
the reason it is cheap is it cost money to store it . no demand at the moment. transport companies will be benefiting big time
Tony Bev said
02:18 PM Apr 21, 2020
President Trump, certainly has some good oil advisers, he is buying 75 million barrels of oil, for Strategic Petroleum Reserve
In my opinion, this would be a good time, for our leaders to nationalise the Australian oil industry, instead of relying on overseas (Singapore), where we buy our fuel from
Build the storage facilities, with the skilled workers who are now either on the dole, or waiting for full employment again
Buy crude oil direct from the oilfields, while the price is low
Build refineries (or appropriate any existing refineries), to refine the crude oil
While we are at it, we may as well build some oil tankers, as they are probably the easiest ships to build
Although I am sure that in the future, (do not know when), we will no longer need a lot of oil, as we turn to electric vehicles, and renewable energy In my opinion, it is better to create work, than to just give out government financial help payments We could then place oil where it should be, (in our sunburnt country), as a backup to our energy requirements
Opps, fell off my soapbox, again
-- Edited by Tony Bev on Tuesday 21st of April 2020 02:26:38 PM
Recoup said
02:23 PM Apr 21, 2020
No more wars for oil ?cheers
bgt said
03:55 PM Apr 21, 2020
Around 1972 I was working in Adelaide in an essential industry. Along came the oil crisis and I was fortunate enough to be allowed to get fuel and drive to and from work. Adelaide streets were deserted. Everyone with a V8 sold them for peanuts and bought 4 cylinder cars.
That was almost 50 years ago. They said then the world was running out of oil. I guess it is running out of fuel. They told us so, so they must be right!!!!! So now the same folks are selling us climate change. So in 50 years will we look back and say the same thing?
I hate it when folks who rely on everything made from petroleum accuse producers of whatever pop's into their small brains.
Oil greases the world we live in. Without it we would all be much worse off.
DeBe said
05:43 PM Apr 21, 2020
Before crude oil Whale oil was king. There was several whaling stations in Australia back then.
Tony Bev said
08:14 PM Apr 21, 2020
If I have read/interpreted the below snip correctly
The International Energy Agency, says we should have 90 days supply of fuel, on our soil
Our Australian bean counters, or their bosses, are counting any fuel, which is in transit, inside an oil tanker
Regardless of which numbers we use, we have either 50 or 80 days of fuel
Mr Taylor (the Federal Energy Minister), has told ABC Radio Brisbane the dramatic drop in oil prices is a good opportunity to look at how Australia can meet that 90 day benchmark
The Federal Energy Minister, now admits that we actually do not have the storage facilities, to store 90 days of fuel, on Australian soil
Link below to the story, which is hidden in a live update, which is why I made a snip
https://www.abc.net.au/news/2020-04-21/oil-price-in-the-us-falls-below-zero-for-the-first-time-ever/12167518
US crude oil has traded at negative prices for the first time in history, with demand for energy collapsing amid the coronavirus pandemic.
The benchmark price for US crude plummeted to negative $US35.20 a barrel as traders sought to avoid owning crude with nowhere to store it.
The price had been nearly $US60 at the start of the year, before shutdown orders swept the world and stopped the operation of factories, offices and cars.
Demand for oil has collapsed so much that facilities for storing crude are nearly full.
Good morning Dorian,
So in summary where does this place Australia in terms of fuels at the pump. Buy, Hold on and wait. We saw fuel prices on the news below 80 cents per litre.
not seen since 2000.
Old
It would be an opportunity for Australia to pull our head out of the sand to catch up & stockpile fuel to the international standard on 90 days reserves. Currently we are at 9 days!
President Trump, certainly has some good oil advisers, he is buying 75 million barrels of oil, for Strategic Petroleum Reserve
Link below to this story
https://www.marke****ch.com/story/trump-seeks-to-add-75-million-barrels-of-oil-to-strategic-petroleum-reserve-amid-historic-price-crash-2020-04-20
Edit to say. It looks like the above link did not work, something about they do not like me, not being able to cook, as I refuse to give them cookies
Here is another link
https://www.indiatoday.in/world/story/us-to-stockpile-75-million-barrels-of-oil-to-strategic-reserve-donald-trump-1669205-2020-04-21
In my opinion, this would be a good time, for our leaders to nationalise the Australian oil industry, instead of relying on overseas (Singapore), where we buy our fuel from
Although I am sure that in the future, (do not know when), we will no longer need a lot of oil, as we turn to electric vehicles, and renewable energy
In my opinion, it is better to create work, than to just give out government financial help payments
We could then place oil where it should be, (in our sunburnt country), as a backup to our energy requirements
Opps, fell off my soapbox, again
-- Edited by Tony Bev on Tuesday 21st of April 2020 02:26:38 PM
If I have read/interpreted the below snip correctly
Link below to the story, which is hidden in a live update, which is why I made a snip
https://www.abc.net.au/news/2020-04-21/coronavirus-australia-live-news-national-cabinet-virgin-airlines/12166868
Actual reserve fuel is about 9 days. We are not supposed to include down to car & lawn mower fuel tanks & spare containers in the garage!