BigfishDM
Merchant Member
Good time to buy!
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Anyone seeing a slowdown due to coronavirus?
- Thread starter iPrintStuff
- Start date
Good time to buy!
Texas_Signmaker said:
That big price drop is due to the sudden collapse of the "OPEC+" group, not anything to do with the novel coronavirus. The Russians didn't want to go along with the Saudi Arabia's calls for deeper production cuts to stabilize prices. So the Saudis said "screw it," dissolved the pact and turned on the taps. Hence the biggest price drops crude has seen since the start of the 1991 Gulf War.
BigfishDM said:
Maybe. But more likely maybe not. The Russians have enormous oil reserves and have stated they can easily put up with abnormally low oil prices for 6-10 years.
The big question is whether American innovators can keep finding new ways to make oil exploration and horizontal drilling even more efficient. They managed to find new ways to make that kind of oil drilling profitable with oil prices at $45-$50 per barrel. Can they do it at $30 per barrel? West Texas Intermediate Crude fell to as low as $27 per barrel over night. Last time I checked it was at $32, which is still a big difference from Friday's close. If oil prices stay down at those levels for any extended periods of time we'll see a lot of oil drilling activity in the Permian Basin come to a fast halt unless the drillers can figure out some new tricks to preserve profitability.
Even with oil trading around the $50 per barrel range companies like Halliburton have been laying off thousands of people. They're one of the biggest employers in Duncan, OK (the town where the company was founded in 1919). The company reported a $1.1 billion loss in 2019.
Texas_Signmaker
Very Active Signmaker
Might be a good time to buy stocks... but NOT oil stocks. If you have any idea about oil and the market you know they have been radioactive for YEARS. Saudi and Russia are trying to price out our drillers here at home. So far we have just been turning off the pumps and can turn them back on which means they won't skyrocket high. Energy has been a bad performer for years now... with a limited outlook for improvement.
dypinc
New Member
Combined with our more efficient use of carbon fuels and our new understanding of how and where it is produced and our ability to now go after it we will have more carbon fuel than we will need for a long, long time to come. Hopefully cost of producing it will be the deciding factor in pricing and the limited "fossil fuel HOAX" and scare tactics to drive up prices will a thing of the past.
I'm hoping this latest market rout in oil doesn't send things back to times similar to the boom-then-bust conditions the oil patch in West Texas and New Mexico saw in the 1980's. People elsewhere in the nation were enjoying gasoline at under $1 per gallon. But times were tough in the oil producing areas. In recent years technology has helped oil producers make things like shale drilling or processing oil sands more profitable -enough so for the United States to take the title of top oil producing nation. But oil production costs can get squeezed only so much in response to falling prices.
So while the Saudis are directly sticking it to the Russians with the move to dissolve OPEC+ the move is also an indirect gut punch to American oil producers. The Saudis have long been sick and tired of American producers driving prices, so now they're returning the favor. However, even the Saudis can withstand oil prices going down only so far. They have their limits too. The fear of coronavirus spread is an added wild card to force prices lower until the threat is contained and neutralized. Gasoline prices are sure to fall considerably lower, but fewer people may take advantage of the savings due to travel fears.
As long as oil remains available as a publicly traded commodity we will see speculators trying to drive up prices and others shorting it when the timing is right. My own short term concern is crude oil prices falling well below the make or break point just to extract it from the ground. American oil companies have already been slashing costs and cutting jobs with oil at or below $50 per barrel. Hopefully the lows we saw this morning will just be a temporary blip and WTI prices will at least get back above $40 for starters.
So while the Saudis are directly sticking it to the Russians with the move to dissolve OPEC+ the move is also an indirect gut punch to American oil producers. The Saudis have long been sick and tired of American producers driving prices, so now they're returning the favor. However, even the Saudis can withstand oil prices going down only so far. They have their limits too. The fear of coronavirus spread is an added wild card to force prices lower until the threat is contained and neutralized. Gasoline prices are sure to fall considerably lower, but fewer people may take advantage of the savings due to travel fears.
dypinc said:
As long as oil remains available as a publicly traded commodity we will see speculators trying to drive up prices and others shorting it when the timing is right. My own short term concern is crude oil prices falling well below the make or break point just to extract it from the ground. American oil companies have already been slashing costs and cutting jobs with oil at or below $50 per barrel. Hopefully the lows we saw this morning will just be a temporary blip and WTI prices will at least get back above $40 for starters.
TrustMoore_TN
Sign & Graphics Business Consultant
Are you in Williamson county also WWD? Thompson's Station here. Our girls were out Friday and today for the "deep clean".
WildWestDesigns
Active Member
Yep, spit one way in Franklin, spit another in Brentwood. My sister is out in Spring Hill.
WildWestDesigns
Active Member
South Texas saw this as well. My grandparents ran an oil machine hauling company (actually considered home based as well, but they had the property enough to have everything there) in Kingsville and they suffered big time due to that bust. They kept on pouring funds in as they just thought it had to turn around (and it did), but they just couldn't have ridden it through to that point. They lost a lot in that time.
dypinc
New Member
The CDC said that so far this season, about 20,000 people have died of the flu, including 136 children......
In all, the CDC estimates about 34 million people have gotten the flu so far this season
But, but we have to get into hysteria over coronavirus which has affected less than 120,00 in the whole wide world with less than 5,000 dead worldwide so far.
Not to mention nearly all the deaths in the US have been at an old folks nursing home in Washington State including a 90 year old woman.
Now if you are not supposed to die from something or the other at 90, when are you supposed to die then?
In all, the CDC estimates about 34 million people have gotten the flu so far this season
But, but we have to get into hysteria over coronavirus which has affected less than 120,00 in the whole wide world with less than 5,000 dead worldwide so far.
Not to mention nearly all the deaths in the US have been at an old folks nursing home in Washington State including a 90 year old woman.
Now if you are not supposed to die from something or the other at 90, when are you supposed to die then?
The Vector Doctor
Chief Bezier Manipulator
I am experiencing a dramatic slowdown
Fred Weiss
Merchant Member
The Dow Jones average is currently down 2,000 points today.
Yes big time.
Texas_Signmaker
Very Active Signmaker
Lot of people lost a lot of $$ today... but they also made a lot over the years. We're back to January 2019 levels.
Just heard of the first coronovirus case in Dallas area... some dude in Frisco... ugh!
Just heard of the first coronovirus case in Dallas area... some dude in Frisco... ugh!
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Notarealsignguy
Arial - it's almost helvetica
It''s not money until you sell it so you cant lose what you never had. Ride it out and don't look. The returns over the past 10 years are still out of sight and have a long way to drop before it actually gets into most peoples original investment.
Notarealsignguy
Arial - it's almost helvetica
thats the truth! not like its ever gonna be free
dypinc said:
First, I agree the media is doing its best to sensationalize the situation in return for ratings points. But this is nothing new. Compounding the problem, certain politicians are not helping the situation by twisting and distorting the truth to fit their own desired narratives, be it the coronavirus is an epidemic or "nothing worse than the flu."
I've been paying more attention to the comments from scientists and health professionals. They've made statements repeatedly that the American public should not panic. But they also keep saying Americans need to take this threat seriously and be vigilant at taking precautions to prevent infection.
This novel coronavirus is not the same as seasonal flu. There are key differences. There are effective vaccines and treatments for many strains of the flu. There are no vaccines or effective treatments for COVID-19. The people who recover from COVID-19 do so based on their state of health and immune system strength. Seasonal flu does kill tens of thousands of Americans every year, but that's in a ratio with tens of millions of cases. Seasonal flu has a mortality rate around .05%, which translates to a ratio of 1 death out of 2000 people infected. COVID-19 is killing 2-4 people out of every 100 infected. And the coronavirus appears to be more contagious and have a long incubation period, making the threat of community spread more serious. We really don't need the coronavirus infecting people on the same mass scale as seasonal flu.
I'm personally not worried for myself if I were to test positive for the coronavirus. My greater fear is catching the virus without knowing it and then spreading it to other people more at risk of COVID-19 complications.