While the price of brent and US shale frop, cartels hapa Kenya wanamake sure hakuna effect. As of now a sheet of paper costs more than a barrel of US crude.[ATTACH=full]298384[/ATTACH]
This is the May contract in the US market, which expires today. That explains the rush to the bottom.
The June contract is still going for above $20 per barrel.
Oil producers are trying to dispose off their oil, but no buyer has free storage capacity.
They all filled up their reservoirs when the price started going down, thinking it will go up.
The price was literally in the negatives a few minutes ago, meaning producers are paying marketers to get the excess oil off their hands.
You can expect this to have little effect on Kenya’s prices because:
- We don’t buy oil from the US.
- We’ve most likely already signed our May contract at over $20 a barrel.
All storage tanks are full. Not just in Houston Texas but also Rotterdam oil storage tanks. The race to the bottom is complete. Its a buyers market. It you have big money there is a fortune to be made if you know whom.to sell to after you buy it. Tanks are full forcing refineries to store fuel in some pipelines.
Also the general outlook of oil is poor. Which means if you attempt to purchase the oil, it will cost you more to inventory it , than you will manage to sell it for in the near future. So it’s a huge risk.
Yeah. It’s also because Coronavirus has plummeted the demand.
Oil producers should have turned off their drills a month ago.
kenyans wengi from comments zao online wako thick kwa akili
Former President Obama started the usa oil wars with Russia by gradually reducing usa oil imports. That meant that supply was acquired by local usa oil producers like shale and the significant big oil producers within usa. Why was it necessary then, well high global oil prices was a boom to Russia treasury for a decade. They repaid all world bank, imf and eu loans taken by Yeltsin. They reformed its soviet industry with local talent and technical cooperation of German tech. They modernized its transportation links and lastly were rearming their military with new modern tech to challenge the usa again. Dropping the global oil price was a calculated trade warfare. Putin adjusted plans and waited for the perfect moment to strike back. He did exactly that last month. With the usa buying a lot of its oil locally, shale companies and other small+medium size oil companies become a success story. Success build ambition in the usa followed by expansion and debt based capital investments fueled by wall street banks giving them as much capital as they want. Putin watched as they took up a lot of debt closely. As corona pandemic hit crude prices, everything aligned and he acted. He blow up a non issue with Saudi Arabia whom he has had good working relationship. Egos got hurt and S.Arabia wanted to prove to Russian they have the final say in OPEC. Russia isn’t a member of OPEC. They both over supplied the market with more crude than the market needed. A race to the bottom of oil prices began upto today. The end result is that all those usa shale companies and medium size companies will go bankrupt as their loans get recalled, seizures starts and they close business. He knows wall street banks only care about the quarterly numbers to the market. They will bury this companies and strip them for every dollar. Then he can switch off oil production to lift price gradually back to where its good.
Best time to invest in Forex!! Invest the prices to go up by $20 in a weeks time!
The price of brent has been on the downward since KSA snd Russia refused to reduce production. I expected a greater impact on April’s delivery.
True. Stocks will rise again.