Everyone. No where to put it.$1.60 a bbl now, somebody is dumping it
Everyone. No where to put it.$1.60 a bbl now, somebody is dumping it
that is an issue.
Kind of an issue isn't it,
if even a large company can't carry the load of liabilities for more than a few weeks?
oil @ $3.35 now at 12.24, 4.20.20
I haven't run the numbers in a while. I don't remember about hourly employees, but for salaried non-executives, you typically add 30% to 35% to Base Salary to cover the cost of other Benefits & Perquisites. And, many top employers have packages more rich than that.
Oil (May futures) got down to a low of -40.32. That means someone would have paid you $40.32 per barrel to take delivery of oil in May. That's right, instead of you paying money to buy oil, someone would have paid you to take the oil. Subsequently, oil rallied to -13.10.
You could have bought 1 million barrels and received $37 million, then you could have sold 1 million barrels worth of the June futures at $21 per barrel, which is a contract to deliver 1 million barrels of oil in June in exchange for another $21 million in cash. Then you could have tried to hire enough tanker trucks to pick up your oil in May and drive back and forth across the US for a month, then returned to the delivery point in time to deliver your 1 million barrels of oil in June. Obviously, the last part would have been the crux!I bought a million barrels when it was at -$37, not sure where I’m going to put it, but I can’t wait for the check!
You could have bought 1 million barrels and received $37 million, then you could have sold 1 million barrels worth of the June futures at $21 per barrel, which is a contract to deliver 1 million barrels of oil in June in exchange for another $21 million in cash. Then you could have tried to hire enough tanker trucks to pick up your oil in May and drive back and forth across the US for a month, then returned to the delivery point in time to deliver your 1 million barrels of oil in June. Obviously, the last part would have been the crux!
It looks like somebody found a way: the spread between the May oil futures and the June(or September) oil futures has narrowed considerably, which means people have been buying May oil futures and selling June oil futures. May oil is now trading at +5.00 and June oil futures are down 40% to +12.00.The devil is in the details.
It looks like somebody found a way: the spread between the May oil futures and the June(or September) oil futures has narrowed considerably, which means people have been buying May oil futures and selling June oil futures. May oil is now trading at +5.00 and June oil futures are down 40% to +12.00.
So, in my previous scenario, if you had found enough tanker trucks to pick up your 1 million barrels of oil in May, and you had sold the June oil futures, which is a contract to deliver the oil in June, then today you could have told the tanker trucks that you were no longer were in need of their services, then sold your May oil futures for a profit of $42 million (-37.00 to +5.00), and bough back your June futures for a profit of $9 million (+21.00 to +12.00), netting you $51 million. Not bad for a days work!