/biz/ - Business & Finance

[Anonymous No.18578384]

Someone who understands economics explain to me what's going on like I'm 5

[Anonymous No.18578432]

line go down

[Anonymous No.18578504]

>>18578384
line down

[Anonymous No.18578609]

>>18578384
oil over supply = oil price go down. Shale and frackers go out of business. Demand returns Big Oil has more market share. Oil prices skyrocket.

[Anonymous No.18578674]

kind of ironic that the oil calls I bought last week have been going up today...

[Anonymous No.18578684]

Line go down, you buy and hold. When line go up, you rich nigga.

[Anonymous No.18578734]

>>18578384
Technological deflation:
https://m.youtube.com/watch?v=7nFbKzt-uwE

[Anonymous No.18578750]

WE ARE FUCKIN OIL FILTH IN THE ASS BY STAYING HOME
#stayHome

[Anonymous No.18578757]

>>18578384
red bad

[Anonymous No.18578833]

line go down

[Anonymous No.18578947]

Everywhere that can store oil is full and no one is using oil so no one is buying oil. The oil drills dont turn off, the pressure would burst the pipes so the oil MUST flow. But theres nowhere to put it. They are now giving people discounts to buy the oil, store it, and put it somewhere.

But they cant find buyers because everywhere is full.

[Anonymous No.18578954]

hey as long as saudi fags don't get to shit on insta hoes anymore and those hoes go out of business I'm happy

[Anonymous No.18579019]

nothing, this means literally nothing, everyone is overreacting because they're either bored or stupid

[Anonymous No.18579152]

>>18578384
I produce oil, I sold one contract to some reddit fag for 30$. after two weeks le reddit cannot accept delivery so he has to sell it. Whoops, no one wants to buy. Reddit has to sell for -30$

[Anonymous No.18579192]

>>18578384
It's oil futures. People bought at low price last month thinking to make big money. Now it seems there is no demand for this oil they are having. Now the people are getting the crude oil barrels delivered to their doorstep. But they cant have that so price dropped hard. Even below zero because they dont want that shit in their backyard being useless and pay the delivery cost of it.

[Anonymous No.18579223]

>>18578384
I'm a banker and don't actually come on /biz/, so you can trust me more than anyone else here.

Futures are a simple financial derivative where one party agrees to buy something from another, at a predetermined price and predetermined future price. In this situation, people were holding oil contracts to buy at x price in may, but that price was estimated 6 months+ ago and is obviously grossly overestimating the actual oil price today.
The thing about financial derivatives is that if you think things are going south, you can actually cut your losses and sell your position to someone else who is more hopeful. Usually this results in a loss, but you're still able to exit and come out ahead compared to if you had gone through with the trade.

What happened here is that the actual price of oil dropped so far so fast that people holding contracts to buy would rather pay someone to take that position from them than go through it, because they stand to lose a lot more that way.

It's a big deal in that it happened, but this is not a technical marvel that should surprise everyone that is even possible. Also, the price of oil itself is not negative and you will not be paid for buying oil.

[Anonymous No.18579332]

>>18578384

were you molested as a 5 year old? if so this will be easier to explain

[Anonymous No.18579394]

>>18579223
>don't actually come on /biz/
>comes on biz

[Anonymous No.18579395]

>>18578947
>The oil drills dont turn off, the pressure would burst the pipes so the oil MUST flow.
Time for flaring

[Anonymous No.18579422]

>>18579394
just to see what's going on here with the big news (blown out of proportion)

[Anonymous No.18579527]

>>18579223
How do I make money off of this?

[Anonymous No.18579634]

>>18579527
it's too late to make money off of the contracts expiring in may. You can take your chances and buy a contract expiring later into the future though, but keep in mind you run the risk of being in a similar situation to what's happening currently.
Personally I think investing in derivatives with your own money is really stupid, and I only do it with other people's money.

[Anonymous No.18579708]

>>18578684
This.

[Anonymous No.18579781]

>>18579634
So your mom's allowance then

[Anonymous No.18579942]

>>18579781
retards that think it's a good idea to leave their money to a financial advisor or a hedge fund deserve to have their money dumped in risky investments and get sub par returns. Never a good idea to do it with your own money at stake though.

[Anonymous No.18580002]

>>18578384
Daddy Vladdy just stuck his fist up every Arab and American shaleniggers asshole

[Anonymous No.18580010]

>>18579019
Yeah oil prices literally don't matter haha

fuck off

[Anonymous No.18580015]

>>18578947
>The oil drills dont turn off, the pressure would burst the pipes so the oil MUST flow.

what the fuck who designed this fuckin shit sounds like an engineering disaster waiting to happen

[Anonymous No.18580052]

>>18578384
Economic warfare by OPEC to destroy the US fracking industry. This is an act of war. Prepare for what's coming, OP.

[Anonymous No.18580079]

>>18580010
found the brainlet who needs to live vicariously through current events because his life is sad. LOL!

[Anonymous No.18580194]

>>18578384
Low demand for oil because coronavirus. US oil suppliers can't get rid of their shit. They are straight up running out of storage space for their oil. High supply, low demand = price plummets. Negative price means oil suppliers are paying people to take their oil.

[Anonymous No.18580407]

>>18579223
are you jewish?

[Anonymous No.18580463]

>>18579422
economic brainlets and site tourists blowing something out of proportion? who would have guessed

[Anonymous No.18580536]

>>18578384

WE'RE GOING TO WAR

[stickyposter 4/20/20 No.18580575]

>>18578384
What if I explained like you were 4? Or 6? What would you do about it? I have all the power here. I can even explain like you're 76-years-old with hearing issues. I'll be fucking yelling and calling you gramps and you couldn't do shit about it. Tell me how that makes you feel.

[Anonymous No.18580862]

>>18580575
based

[Anonymous No.18580914]

>>18578684
Based as fuck

[Anonymous No.18580931]

>>18580052
i wonder if hippies will still whine about fracking and oil pipelines going through native lands when there is no food on the shelves

[Anonymous No.18580961]

>>18579223
Futures were, are and will be a mistake, always. They grow economical inequalities to the sky, fuck the economy, and once they fucked everything, socialize loses and reset the system trough wars. Jewry all around. Hope that people growing rich on futures get the rope sooner than later.

[Anonymous No.18580977]

>>18580931
fracking is literally retarded

[Anonymous No.18580986]

>>18580575
You didn’t need to rim ops asshole so hard he yields

[Anonymous No.18581083]

>>18580015
Le black swan meme kinda applies here.

[Anonymous No.18581084]

>>18578684
But my investor app has only positive dollars.
Where can I find mobile investing app that has negative dollars. (I'm using IOS)
Thanks

[Anonymous No.18582439]

soo why are we using month june in europe? i am noob.

[Anonymous No.18582772]

>>18579223
MORE REASONS TO STOP BUYING PAPER ASSETS
GOLD AND SILVER WILL MOON
NOW GET THE FUCK OFF THIS BOARD YOU JEW OR I'LL GET JESUS TO WHIP YOU

[Anonymous No.18582823]

>>18578384
Saudi Arabia got fucking played

[Anonymous No.18583529]

>>18578609
You think you're clever but the biggest oil companies now have a lot of Shale too

[Anonymous No.18583563]

>>18578384
money printer go brrrrr

[Anonymous No.18583636]

>>18580015
Stop Believing everything you read here