Oil price drop to diesel ?

[Portofino]

Oils dropped to a 1/3rd ( $60 to $20 a barrel ) as demands tanked .
Wonder if we will see diesel drop at the pumps , when we are allowed back this summer ?
Realise it will take a lag to filter down and at the same time as demand WW increases go back up .
But WW demand might ( virus effecting different geo locations at different times ) stay low for the rest of the year .

So when , or if we can get started June / July ......there could be a silver lining .

If so feel a long + fast trip in the Med coming on

 

[PalmaTarga]

I doubt the refineries are operating and buying at this price.

 

[Old Harry]

The Saudies are over producing to get at the Russians & VLCC are being chartered to act as floating storage.
The marinas will have stocks at the high previous price, so dont expect cheap for the time being

 

[oldgit]

Reports of future negative pricing.
Folks will be paid to take it away and store it.
No capacity to store at refineries , to expensive to shut down pumps and refineries, once some shut they will stay shut. !
Shale the Saudi target but if they fall out with The Manboy ?

 

[volvopaul]

I cannot see the marinas dropping the price of fuel in there tanks as they would have paid last years prices , it’s getting cheaper at the pumps by the day, soon we will be able to put DERV in our tanks if we could find a place in the solent where a tanker can get beside the boat . It’s already £1.03 where I live which is cheaper than anywhere I’ve seen lately for Gas oil with the 60/40 rule applied .
Remember folks on your first fill up whenever that might be to fill up at winter rates after all your boat must have used a fair bit keeping it warm over the winter .

 

[essexboy]

The price of home heating oil is rising !

 

[Momac]

Whats the use of cheap fuel that cannot be consumed ?

 

[Old Harry]

The price of home heating oil is rising !

Oil Storage at Sea Approaching 2009's Record Levels – gCaptain

 

[Refueler]

There are some good points in posts above ...

1. Pump prices will take time to fall due to the stock being delivered is derived from higher priced crude.
2. Crude prices now are very low - but movement is slowing as storage fills up and they find VLCC's and ULCC's to act as Floating Storage ... we call them Floaters or FSO. Reason for this is two-fold. a) its difficult to 'turn off' and very expensive to restart production, b) buy cheap - sell later at higher price.
3. Its only part of the story Saudi vs Russia ... there is also that its not in their interest to allow USA to continue increasing export of not only Shale but also Well derived crude onto the market.
4. The general oversupply of all grades is happening now as sales reduce with the reduction of transport and retail.
5. Ships are having varying limitations imposed in Ports ... in some cases depending on where ship loaded - not allowed to dock till later. Many now are having to be 'processed' electronically with least number of people going on board.

My business has seen two factors affect it :

Approx 50% reduction in business from Clients (Oil Traders) to supervise / superintend cargoes. Partly due to cheap price and they can afford the losses against cost of my guys to control. But approx 40% increase in business due to locked down borders - I was one of the first in my business to actively recruit local people to cover cargoes and avoid the need for travel. Unfortunately this increases my costs as they know I have to use them and clients expect cheaper rates .... but we survive.

 

[Assassin]

I have 500 gallons coming tomorrow at the new price for my tank and they cannot get it out quickly enough as they are chasing business.