Oil plunges below zero for first time with May contract ending

Re:Oil plunges below zero for first time with May contract e... by unexpected on Monday April 20, 2020 @11:30AM (#22924739)

Saudi makes up shit when they say their extraction costs are $3/barrel. A lot of clever accounting in that one. Actual extraction costs are roughly $10-$15/barrel.

[ Parent | on HN ]

Re:Oil plunges below zero for first time with May contract e... by chki on Monday April 20, 2020 @11:38AM (#22924833)

Why do they or why would they make up extraction costs? (Genuinely interested)

[ Parent | on HN ]

Re:Oil plunges below zero for first time with May contract e... by exhilaration on Monday April 20, 2020 @11:52AM (#22924982)

Posturing. They want to intimidate producers (and their investors) that have much higher extraction costs, like U.S. frackers and Canadian oil sands firms. "We can bring oil to $10/barrel and still be profitable," you can imagine them saying threateningly.

[ Parent | on HN ]

Re:Oil plunges below zero for first time with May contract e... by unexpected on Monday April 20, 2020 @01:46PM (#22926352)

exactly what exhilaration says below! I work in the oil and gas business. U.S. independent oil companies are survivors. If I have to pick between the U.S. shale producer or Saudi kingdrom, I'll pick the U.S. shale producer every time.

[ Parent | on HN ]

Re:Oil plunges below zero for first time with May contract e... by xchaotic on Monday April 20, 2020 @05:30PM (#22928798)

To have an upper hand in negotiation. Everyone knows Saudi can win the war of attrition with oil at low prices they just don’t know by how much.

[ Parent | on HN ]

Re:Oil plunges below zero for first time with May contract e... by boringg on Monday April 20, 2020 @11:36AM (#22924806)

Still far cheaper then almost everywhere else. $3 or $15

[ Parent | on HN ]