Oil Slick Stuff

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Stocks slide after historic oil deal [Video]

The world's largest oil producers agreed to cut production by almost 10%
U.S. equity markets opened with modest losses as investors digested the historic oil deal between OPEC and other oil-producing nations and looked ahead to first-quarter earnings season.
The Dow Jones Industrial Average fell 350 points, or 1.48 percent, while the S&P 500 and Nasdaq Composite were lower by 1.26 percent and 0.73 percent, respectively. The early selling comes after the benchmark S&P 500 gained 12 percent last week, making for its biggest weekly advance since 1974.[more]

https://www.foxbusiness.com/markets/us-stocks-april-13-2020
 
Texas Oil at $2 a Barrel Raises Specter of Negative Prices

In Texas, prices are heading in that direction. A subsidiary of Plains All American Pipeline bid just $2 a barrel for South Texas Sour on Friday, while Enterprise Products Partners LP offered $4.12 for Upper Texas Gulf Coast crude this week, according to pricing bulletins.

Offers could fall further if benchmark West Texas Intermediate crude futures -- which have lost three-quarters of their value this year -- continue to tumble. WTI closed below $20 a barrel this week for the first time since 2002. That bodes ill for producers locked into contracts with suppliers, as the daily price they earn for their crude moves with the broader market.
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https://finance.yahoo.com/news/texas-oil-2-barrel-raises-120000398.html
 
With oil in the headlines again this morning, I did some googling to see if there was a correlation between oil and the stock market. Results:

Reuters: "While there is no long-term correlation, oil and stocks can be somewhat correlated over shorter time frames. But this can happen between any two things for short spurts. If you take professional football data and compared them to stock prices, you can likely find short periods when there seems to be some kind of relationship there. But these short flings are still meaningless and won’t help you be a better investor—Sorry, football fans." https://www.reuters.com/sponsored/article/oil-and-stocks

Investopedia: "Researchers at the Federal Reserve Bank of Cleveland looked at movements in the price of oil and stock market prices and discovered, to the surprise of many, that there is little correlation between oil prices and the stock market.

Their study does not necessarily prove that the price of oil has a very limited impact on stock market prices; it does suggest, however, that analysts cannot really predict the way stocks react to changing oil prices." https://www.investopedia.com/ask/answers/030415/how-does-price-oil-affect-stock-market.asp

MarketWatch: "Correlation often intensifies during selloff" https://www.marketwatch.com/story/s...-thanks-to-global-economic-worries-2019-01-03

FXCM: "When it comes to the relationship between oil and stock pricing, at least a moderate correlation does exist. It is often cyclical and can be either positive or negative. The relationship is dependent upon any number of factors and can vary wildly." https://www.fxcm.com/markets/insights/the-relationship-between-oil-and-stock-prices/



 
Well, Folks- mark this day in history.

For the first time ever, the price of a barrel of oil is trading at a NEGATIVE -$32 a barrel., with 30 minutes before the close.

oil-crash.jpg
 

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Our Government ought to be smart today- and BUY all available at the negative price, to put into the Strategic Petroleum Reserve.
It's a huge money maker if they do.
 
James48843 said:
Our Government ought to be smart today- and BUY all available at the negative price, to put into the Strategic Petroleum Reserve.
It's a huge money maker if they do.
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I think one of the reasons for the price dropping was because storages are already full. Seems like a simple solution to that though, get more storage.
 
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