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Bakken Crude Worth Less Than Nothing

Mike

Well-known member
Oil is so plentiful and cheap in the U.S. that at least one buyer says it would need to be paid to take a certain type of low-quality crude.

Flint Hills Resources LLC, the refining arm of billionaire brothers Charles and David Koch’s industrial empire, said it would pay -$0.50 a barrel Friday for North Dakota Sour, a high-sulfur grade of crude, according to a list price posted on its website. That’s down from $13.50 a barrel a year ago and $47.60 in January 2014.

While the negative price is due to the lack of pipeline capacity for a particular variety of ultra low quality crude, it underscores how dire things are in the U.S. oil patch. U.S. benchmark oil prices have collapsed more than 70 percent in the past 18 months and West Texas Intermediate for February delivery fell as low as $28.36 a barrel on the New York Mercantile Exchange on Monday, the least in intraday trade since October 2003.
 

Steve

Well-known member
seems the only happy campers are the Iranians and saudi's ... oh and Obama's buddy with all the trains..

it is nice to fill up on cheap gas,.. but it is a real bad economic indicator..
 

Mike

Well-known member
Banks worry about oil drilling loans: http://money.cnn.com/2016/01/18/investing/oil-crash-wall-street-banks-jpmorgan/index.html
 

Steve

Well-known member
Just this week Morgan Stanley warned that the super-strong U.S. dollar could drive crude oil to $20 a barrel. Not to be outdone, Royal Bank of Scotland said $16 is on the horizon, comparing the current market mood to the days before the implosion of Lehman Brothers in 2008.

Standard Chartered doesn't think those dire predictions are dark enough. The British bank said in a new research report that oil prices could collapse to as low as $10 a barrel -- a level unseen since November 2001.

as it sits now. both Russia and Iran have to sell oil... add in the other failed states in the middle east all needing cash to prop up what little security they have left and it is just another economic timebomb..
 
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