Author Topic: Master List of limited time opportunities created by the COVID-19 crisis  (Read 25430 times)

Offline good sam

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Anyone else have the brilliant idea of purchasing an oil tanker for 42 million dollars, cashing in the contract for $37 per barrel and 2,000,000 barrels can fit on a tanker, that = $32 million.

Who wants to get in with me?
Why aren't the people who already own the oil tankers doing that?
If you don't care why would you comment?
HT: DMYD

Online aygart

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Why aren't the people who already own the oil tankers doing that?
They are. There are record numbers of tankers at sea.
Feelings don't care about your facts

Offline good sam

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They are. There are record numbers of tankers at sea.
If so why would anyone sell an oil tanker now?
If you don't care why would you comment?
HT: DMYD

Offline dealfinder11

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Anyone else have the brilliant idea of purchasing an oil tanker for 42 million dollars, cashing in the contract for $37 per barrel and 2,000,000 barrels can fit on a tanker, that = $32 million.

Who wants to get in with me?

"A tanker truck can hold about 8,000 gallons of crude oil, and since one barrel of crude oil is the equivalent of 42 gallons, that means that one tanker truck can hold about 190 barrels of oil"

Offline ExGingi

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Anyone else have the brilliant idea of purchasing an oil tanker for 42 million dollars, cashing in the contract for $37 per barrel and 2,000,000 barrels can fit on a tanker, that = $32 million.

Who wants to get in with me?
What are the operating costs of the tanker?

Is the tanker ready to be loaded at the port where contract delivery occurs?
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline ExGingi

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"A tanker truck can hold about 8,000 gallons of crude oil, and since one barrel of crude oil is the equivalent of 42 gallons, that means that one tanker truck can hold about 190 barrels of oil"

The cost of the tanker should have tipped you off that this isn't a truck.
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline dealfinder11

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The cost of the tanker should have tipped you off that this isn't a truck.

Fair enough. But 32 mill sounds kind of low in that case.

Offline Moshe_N

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Why is it low?

Offline Moshe_N

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What are the operating costs of the tanker?

Is the tanker ready to be loaded at the port where contract delivery occurs?
If you purchase a June contract I'm sure you can have that organized by then? The operating costs are 10k a day. But that leaves you 2 full years and still a payout of 15 mil

Offline ari3

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Anyone else have the brilliant idea of purchasing an oil tanker for 42 million dollars, cashing in the contract for $37 per barrel and 2,000,000 barrels can fit on a tanker, that = $32 million.

Who wants to get in with me?
What are the operating costs of the tanker?

Is the tanker ready to be loaded at the port where contract delivery occurs?
WTI (West Texas Intermediate, the oil that these contracts are trading) takes delivery at Cushing Oklahoma which is landlocked and 500 miles from the sea.

Offline Moshe_N

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Question is, why isnt anyone doing this? Is there something I'm missing?

Offline Lurker

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Question is, why isnt anyone doing this? Is there something I'm missing?

Pipeline access?
Failing at maintaining Lurker status.

Offline ExGingi

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WTI (West Texas Intermediate, the oil that these contracts are trading) takes delivery at Cushing Oklahoma which is landlocked and 500 miles from the sea.

I don't think pipelines are a problem at this point.
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Online cgr

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Question is, why isnt anyone doing this? Is there something I'm missing?
I think it's safe to assume that if prices crashed that low, there was/is no storage space available at Cushing, in tankers, or otherwise.
If you could get a tanker to storage some oil, I bet you WTI could too...

Offline ExGingi

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If you purchase a June contract I'm sure you can have that organized by then? The operating costs are 10k a day. But that leaves you 2 full years and still a payout of 15 mil

https://www.bloomberg.com/opinion/articles/2020-04-22/negative-oil-how-to-lose-90-of-your-money-in-14-years-in-an-etf
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline chief_mag

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I think it's safe to assume that if prices crashed that low, there was/is no storage space available at Cushing, in tankers, or otherwise.
If you could get a tanker to storage some oil, I bet you WTI could too...
Quote
  Currently we are in Contango because there's too much oil being produced, and nobody is using it because of coronavirus....Interesting fact, many years ago WTI traded at a premium to Brent because the biggest user of oil was America and it was cheaper to get it in Oklahoma than ship it from Europe. Now it's the opposite. Nobody wants this landlocked oil.
So what are the implications? May expiration was an anomaly, if you expect to see -40 in the June contract, I can almost guarantee you won't. Longs have seen what can happen if you wait too long so they will sell earlier (as price action already shows). Also, the carry trade will get ramped up more. One day is not enough time to find a bunch of tanker trucks, but one month is....
​"OMG oil is negative, let's buy a tanker ship and dump it in there"
Good luck sailing your tanker ship to landlocked Cushing, OK. As stated above, this is why Brent Crude is not negative.
"Well I can just rent a bunch of tanker trucks for next month, can't I?"
All the big companies are lining up additional/weird storage capacity for next month....This is why you won't see June go negative unless there are other technical issues like margin requirements and forced FCM liquidations.

Offline simple26

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I think it's safe to assume that if prices crashed that low, there was/is no storage space available at Cushing, in tankers, or otherwise.
If you could get a tanker to storage some oil, I bet you WTI could too...
Not so sure if inzere guys were able to get ventilators when everybody was scrambling would give this a chance just go to be creative

Online flyingace

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There are no storage containers available for weeks already. They've been filling up rusted old tanks from the junkyards.

Online Yehuda57

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Re: the thread title
Opening a bajillion new threads

Offline Luvisrael

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