Price of Oil

Discussion in 'Financial Cents' started by sdr, Apr 20, 2020.


  1. duane

    duane Monkey+++

    The beginner in the stock market or commodities market seems to think that a order to sell at some lower price limits his liabilities. Looks good on paper, but it only works if someone is willing to buy. Buy a stock at $100, put in a sell order if it reaches 110 or if it drops to 95. Put $10 down , borrow the rest and you can double your money, less interest at 110 and only lose half if it goes down to 95, What a deal and if you are a short term trader, it can be done many times a year. But if no one will buy it, its value may go to 0 and you get that dreaded margin call that the broker wants his 90. Your $10 is gone and you owe 90 more, or in most cases it is the bank or lender who wants the money and you can bet the farm that they are going to do every thing they can to get it. With a physical object, gold, copper, oil, stored in a warehouse, they can tell you to come pick it up, or charge you for removing it, and thus -37 a barrel to find someone to haul it away. I would expect that a lot of "expert" oil traders are no longer in business as everything they had is now gone, and the banks or trading agencies may well be left holding the bag if they can't get uncle sugar to pick up the tab.

    Old flathead engines, fords, tractors, dozers, etc all ran well on drip gas, used to have it in pumps in 1940's, only God knew what the octane was, no one cared as long as the engine would start and pull. Was either somewhat exempt from the rationing on gas during WW2, or everyone ignored the rules. Had a B-25 make a forced landing in our pasture, fixed engine, left gramps a few 55 gal drums of avgas as they had to lighten the plane to take off, and about 1/4 avgas, 3/4 drip gas worked very well for a year or so on everything we tried it on. Doubt it would work on modern engines, as flatheads with right compression and a heated carb would run on kerosene.
     
    Cruisin Sloth and Gator 45/70 like this.
  2. Cruisin Sloth

    Cruisin Sloth Special & Slow

    Fill up and store in your fuel farm .. (just make one )
    S
     
    oldawg and Gator 45/70 like this.
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