Holy Sheet: Oil price drops 30% overnight after collapse of OPEC talks

[MikeInWimbledon]

This would have created pandemonium in itself, let alone in a financial world that's struggling to handle day to day routine business..

Fabulous news for petrolheads but a massive shock for the motor industry, and many core industries. Obviously a knock out punch for the Scottish Oil industry, but this will undermine a host of businesses and not just "green initiatives."

Financial Times

 

[markjay]

If this does lead to prices going down at the pumps... then it's not a great help for the EV cause.

 

[Deleted member 126251]

Short term blip....

 

[Big Janner]

Tend to agree
A short term benifit . . . IF, the consumer sees any benifit at all

 

[MikeInWimbledon]

Bye bye Scottish oil Economy.
Bad luck FlyBE, just two weeks earlier and you'd still be firmly in business.
Hey ho, Tesla and all new EV projects - economics seriously undermined
Another 10-15% off our pension savings.
Let's hope no banks collapse - beyond the ones in China and Italy.

Best news of all: GBP: USD at $1.32 and the cost of holiday flights to USA about to drop to the lowest for more than a decade.

 

[markjay]

Short term blip....

Life on Earth..?

 

[grober]

All down to Russia and that nice Mr Putin taking the opportunity to put the boot into US SHALE according to this.
Subscribe to read | Financial Times
Putin targets U.S. fracking with oil price war, in new threat to Trump's election-year economy

 

[Deleted member 149005]

I pity anyone retiring any time soon - pension values will be taking a hammering

 

[KennyN]

I pity anyone retiring any time soon - pension values will be taking a hammering

They are , just checked my Fidelity Pension online and wish I hadn`t bothered now

It has lost more in the last week than what was contributed in the last 12 months.

K

 

[Petrol Pete]

Even worse news then for Venezuela especially as they have the largest oil reserves in the world.

 

[Harrythedog]

Must have been the oil company execs buying all the bog rolls

 

[Bellow]

This would have created pandemonium in itself, let alone in a financial world that's struggling to handle day to day routine business..

Fabulous news for petrolheads but a massive shock for the motor industry, and many core industries. Obviously a knock out punch for the Scottish Oil industry, but this will undermine a host of businesses and not just "green initiatives."

Financial Times

Bye bye Scottish oil Economy.
Bad luck FlyBE, just two weeks earlier and you'd still be firmly in business.
Hey ho, Tesla and all new EV projects - economics seriously undermined
Another 10-15% off our pension savings.
Let's hope no banks collapse - beyond the ones in China and Italy.

Best news of all: GBP: USD at $1.32 and the cost of holiday flights to USA about to drop to the lowest for more than a decade.

I don't know what the barrel price has fallen to but last week it was at $50 - quite a bit from the record $130 pre-crash. Somehow - albeit with some 200,000 jobs jettisoned - the industry survives.

 

[Skd884]

Oil prices are down more than 20% with Brent crude trading at $35.98 a barrel


Shares plunge in worst day since financial crisis

 

[Bellow]

All down to Russia and that nice Mr Putin taking the opportunity to put the boot into US SHALE according to this.
Subscribe to read | Financial Times
Putin targets U.S. fracking with oil price war, in new threat to Trump's election-year economy

I'm more inclined to believe Putin hasn't yet woken up to the slowdown COVID-19 has created.
It's also a bit of a jump to envisage Putin eschewing Trump and contemplating a POTUS who is closer to a genuine socialist than any other. Putin for Sanders? Hmmm....

 

[MikeInWimbledon]

Here’s the NASDAQ commentary as at U.K. lunchtime

Daily Markets: Oil, Bonds, and Coronavirus Shocks Send Markets Deep Into the Red

With Saudis selling oil at these prices, the Scottish oil industry will be mothballed.

Someone will have a more up-to-date number, but we used to talk about $50 as being the breakeven for Scottish oil (and fracking).

There's going to be tears at bedtime.

Still, we wanted to move from fossil fuel production - didn't we....?

And long-haul flights will become WAY cheaper. Especially to China and Italy

Dunno what will happen to the Tesla share price, now they've lost their big growth market AND the financial justification for going EV.

 

[Deleted member 6183]

Here’s the NASDAQ commentary as at U.K. lunchtime


Daily Markets: Oil, Bonds, and Coronavirus Shocks Send Markets Deep Into the Red

With Saudis selling oil at these prices, the Scottish oil industry will be mothballed




Sent from my iPhone using Tapatalk

Has anyone told Pontoneer?

He won't be happy.

 

[400ixl]

Dunno what will happen to the Tesla share price, now they've lost their big growth market AND the financial justification for going EV.

Nothing has changed for Tesla or toher EV manufacturers. It is still going to be cheaper to run than fossil fuel, and most people currently buy them for other reasons. Legislation has also not changed, neither have the subsidies that many countries still provide to buyers. Their big growth market of people wanting to be ethical buyers is still there. Very blinkered anti electric bias I see.

Airlines typically fix their fuel supply prices months in advance so it would have had next to no effect on Flybe who had an immediate cash flow problem which tipped them over. As such it won't have much effect on airlines for a while and they will not be dropping prices whilst they have an issue of the number of passengers willing to travel means that they are not economical to run at the current price. You may see lower prices once demand improves if the price stays low.

Somehow I doubt the price will stay at this point for long. It will be manipulated back up.

 

[Dryce]

Nothing has changed for Tesla or toher EV manufacturers. It is still going to be cheaper to run than fossil fuel, and most people currently buy them for other reasons. Legislation has also not changed, neither have the subsidies that many countries still provide to buyers. Their big growth market of people wanting to be ethical buyers is still there. Very blinkered anti electric bias I see.

So basically no change on EVs then ... the better off continue to feel better about themsleves while paying for expensive EVs and getting subsidies.

But the less well off masses get cheaper hydrocarbons to slosh into their non-EVs.

As such it won't have much effect on airlines for a while and they will not be dropping prices whilst they have an issue of the number of passengers willing to travel means that they are not economical to run at the current price. You may see lower prices once demand improves if the price stays low.

The airlines are all about yield management and the prices flex accordingly.

If you have a flight that is going anyway - and it has empty seats - then if they need the cash prices will reflect that need.

I suspect that the airlines are more worried about passenger numbers and dealing with other costs right now than fuel as they face a potential abyss.

 

[markjay]

I think the idea is that governments subsidise EVs (via tax breaks and other means) and penalise ICE-cars (via emissions taxation) until enough EVs have been bought by the public to establish a point-of-no-return; then pull all the subsidies and tax EVs.

 

[Dryce]

I think the idea is that governments subsidise EVs (via tax breaks and other means) and penalise ICE-cars (via emissions taxation) until enough EVs have been bought by the public to establish a point-of-no-return; then pull all the subsidies and tax EVs.

That's all very well. But the actual atrategy seems to be quite immoral when the directors of a company get their Tesla and Jagur EVs and fit out the carpark with charging points for the greater good but actually more themsleves while the plebs are left wondering if they will be allowed to drive their car into their nearest town or city over the next few years.