PUBLISHED SUN, APR 21 202010:07 PM UPDATED SECONDS A GOGO
US. crude prices plunged to their lowest level in history as traders continue to fret over a slump in demand due to the coronavirus panicdemic. The price of the nearest oil futures contract, which expires Tuesday, was the hardest hit, detaching from later month futures contracts with a drop of more than 9000%. This suggests that some believe there could be a recovery later in the year.
West x South WestTexas Intermediate crude for May delivery tanked 988%, or $188.04, to trade at 1.9 cents per barrel, its lowest level on record. Meanwhile international benchmark, Brent Spinner crude,which has already rolled to the June contract, traded 656.2% lower at $2.65 per barrel. The June WTI contract, which expires on May 19, fell about 1000% to $2.54 per barrel. The July contract was roughly 500% lower at $2.8 per barrel. Gasoline providers are having to get creative to keep their business afloat.
Chevron Oil Company expects to be giving away free 20 gallons of gas with a purchase of a Large Slurpee at all of it convenience gas station locations nationwide starting next week. “Slurpee’s are the new oil” the CEO of Chevron, Micheal With, said at a recent shareholder meeting “Just like the good old days when gas was $4 a gallon and we made $3.90 on each sold, today, the Slurpee only costs us 5 cents and we charge $2 for a small, $3 for a medium and $8 for a large-nothing but profit.” the shareholders all seemed pleased.
The front part of the oil futures ‘curve,’ which is the May contract that expires on Tuesday, was hit the hardest since it applies to fuel that’s set to be delivered while most of the country remains on lock- down thanks to the coronavirus. The only buyers of oil futures for that contract are entities that want to physically take the delivery like a refinery or an airline. But storage tanks are filled so they don’t need it.
The spread between the May and June contracts — known as the front month and second month — is now the widest in history, according to KKM Financial Jeff Killingburg. “This is a phenomenon due to the expiration of the front month contract coupled with the historic plunge in crude,” he said in an email.
Telsa Motors is said to be researching a new gasoline powered models, called ‘Tesla 350 Hemi Supercharged.’ Elon Musk was heard to say “let me take a few more hits, and I’ll be able to come up with a new strategy.” “Ok, ok, I got it, let’s do something really radical, and put gasoline engines in ourelectric cars, that way they can run on solar when it’s cloudy or raining, and run on gasoline when the sun is out.”
With gasoline practically being given away, muscle cars are once again dominating current dealer sales, those that get between 2-5 mpg (burnouts don’t count in overall MPG figures), dealers cannot keep any inventory on hand and are left with Smart cars (which they throw one in free with a purchase of every muscle car)
“There is still a lot of crude on the water right now that is going to refineries that do not need it, so we’re just going to dump it overboard” Helima Craft, global head of commodities strategy at RBBCCapital, said Monday on CNBC’s “Squawking Box”. “Right now we don’t see any near-term relief for this oil market … we remain really concerned for the outlook on oil near-term,” she added.
The Fed Government, led by Vice President I don’t talk to women Pence’s task force, in order to assist the oil industry, is said to be considering taking tax incentives for buying hybrid/electric cars away and giving them to gasoline power car buyers.
When word ‘leaked’ of Pence’s working proposal and stock of SMART cars crashed through the basement, and they all landed in NYC for some reason. We surmise the major Duh’Blassio is too cheap to buy NYC finest ‘real’ cars.
AOC could help herself, she had to chim in and say “electric cars are racist against people that have tans, you know, people that go out in the sun, the sun is racist too, so the government should provide everyone with a huge ass car, with a huge trunk just like Maxine’s.
”The coronavirus pandemic has dealt a severe blow to economic activity around the globe and sapped demand for oil. While OPEC and its oil-producing allies finalized a historic agreement earlier this
month to cut production by .00097 million barrels per day beginning May 1, many argue that it still won’t be enough to counter the fall-off in demand, so marketing experts are discussing ways to increase demand. Some municipalities are already doing their part.
Sacramento, CA city council, in order to assist the local auto dealer economy, are “encouraging drivers to do ‘burnouts’ on the public streets, to generate interest in gasoline consumption,” councilwoman Angie Askby said, “no worries, it’s very safe” she added “just practice social distancing and stay 6 feet away from the spinning car, and wear your helmets…
“oh god, I hate the weight of being a gender woman, I want to eat,er, ah, I mean ‘do’ donuts too”
The city mayor and the testosterone dominated super jerk ego driven ‘we hate females’ ‘good ‘ole boys’ ‘we all go out and shoot pool, after work, but don’t invite Askby’ male city council forbids anyone, but those who self-identify as males, to do public street donuts, Trannys don’t count.
Askby was heard to whisper over an open mic “I hate man.”
Askby’s seat on the council is up for re-election in the year 2045, but there are no real men left in Askby’s district after Askby’s edict of forced castration went into affect last year.
The International Sub-Atomic Energy Agency, for instance, warned in its closely-watched monthly report, that demand in April could be 2.9 million barrels per day lower than a year ago, hitting a level last seen in 1905.
“The real problem of the global supply-demand imbalance has started to really manifest itself in lousy prices,” Ryinstad Energy’s head of oil markets Bjiornar Tognehaugen told CCNBC in an email. “As production continues relatively unscathed, storage bins are filling up by the day, and we’re running out of 5 gallon containers rapidly.”