[Nigel]

Oil price has hit zero and I think even went negative in the last couple of hours.

Wow. Who will be the last man standing? Russia? US fracking and Canada oil sands can't cope with that for long.

[Falling Down]

I should have corrected in the last few moments - this was the WTI (American) price.  Brent is still at $26. Still completely remarkable territory.

[SA Chris]

It was only a blip, but not good for the industry

[SA Chris]

Brent is still at $26 19

EEK!

[gme]

I can see it falling further Chris. Its a double whammy of lack of consumers and over supply but with the latter being driven by its own independent war.

Are the Saudis not just going to keep pumping as they see an opportunity to wipe everyone else out.

[SA Chris]

The OPEC issue between Saudis and Russia was allegedly resolved last week. If it's was a case of diving to the bottom and seeing who can hold their breath the longest, the Russians would win.

[petejh]

As I was reading the other day - the best thing for a high commodity price is a low commodity price. Wipe out loads of your competitors with bargain prices, ultimately the big players remaining have more control over the market, in a world where there's dwindling demand for oil.

[SA Chris]

Sadly UK production would be one of the first to get wiped in that case.

[tomtom]

As I was reading the other day - the best thing for a high commodity price is a low commodity price. Wipe out loads of your competitors with bargain prices, ultimately the big players remaining have more control over the market, in a world where there's dwindling demand for oil.

Was that Saudis plan? To drive the US and Russian producers out of business?

Like heavyweight boxers just slugging it out - with the Saudis having the deepest pockets to last it out the longest.

[Falling Down]

Pretty much yes.

[teestub]

I wonder if this might potentially hasten the end of our dependence on oil for transport?

[dunnyg]

Really cheap oil hastens the end of oil based transport? Not sure on the mechanics of that?

[SA Chris]

with the Saudis having the deepest pockets to last it out the longest.

Actually an interesting hypothetical battle; Saudi's entire economy is pretty much oil, and they have significantly higher uplift cost, and a reasonable cash reserve. Russia has considerably lower uplift cost, alternative sources of income and a larger "economy" overall.

Not sure who would have lasted longer. I expect Russia, out of sheer bloodymindedness.

[teestub]

Really cheap oil hastens the end of oil based transport? Not sure on the mechanics of that?

As per the above posts, the cheap run removes competitors resulting in an oligopoly/monopoly who can charge what the fuck they want.

[gme]

with the Saudis having the deepest pockets to last it out the longest.

Actually an interesting hypothetical battle; Saudi's entire economy is pretty much oil, and they have significantly higher uplift cost, and a reasonable cash reserve. Russia has considerably lower uplift cost, alternative sources of income and a larger "economy" overall.

Not sure who would have lasted longer. I expect Russia, out of sheer bloodymindedness.

Once they have bought an amazing footy team in the UK they wont need the oil money anymore.

[dunnyg]

Oil price has crashed fairly regularly, it is a classic boom and bust market. Sure production shuts down in some areas if the price falls below a price threshold for long enough, but if the saudis or whoever start charging out of the nose, production will start up again as the price is above a certain threshold. I know it is more complex than that, but I think the simple statement still holds generally true.

[SA Chris]

Once they have bought an amazing footy team in the UK they wont need the oil money anymore.

Can't think of any, only a few half hearted no-hopers getting flogged off cheap.

[Somebody's Fool]

Once they have bought an amazing footy team in the UK they wont need the oil money anymore.

I heard the price of Joelinton was also forecast to go negative at some point soon.

[tomtom]

Once they have bought an amazing footy team in the UK they wont need the oil money anymore.

I heard the price of Joelinton was also forecast to go negative at some point soon.

😂

[Johnny Brown]

the cheap run removes competitors resulting in an oligopoly/monopoly who can charge what the fuck they want.

I had hoped we might see the same in the uk rope access training biz. Sadly most of our competitors have just continued trading.

[teestub]

Have you been flooding the market with suspiciously cheap level 1’s?

[gme]

Once they have bought an amazing footy team in the UK they wont need the oil money anymore.

I heard the price of Joelinton was also forecast to go negative at some point soon.

That happened months ago and nothing to do with the virus.

[chris j]

Was that Saudis plan? To drive the US and Russian producers out of business?

The US fracking industry is reportedly running on vast amounts of debt, unlike in  the previous price crash back in 2014, so much more vulnerable. On the other hand Trump is much more likely to support them than Obama would have been as having the domestic onshore shale go bust doesn't go well with making America great...