How do you buy oil barrels?

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Submitted by Coronita on April 20, 2020 - 11:06am

With the price of crude oil around $1/barrel, or soon to be negative dollars/barrel, I'm just wondering there's got to be some way you can store it somewhere for a future date....

I'm only half joking, but I can't imagine things staying this way for a long time.

https://finance.yahoo.com/news/oil-crash...

Submitted by The-Shoveler on April 20, 2020 - 11:54am.

LOL Wife is going crazy trying to figure this out.

I figure this will eventually boomerang back to $80-100 given production cut as things open up.

So far uso is what she bought this morning.

Submitted by Coronita on April 20, 2020 - 11:56am.

oil just went negative..... wow. Can I just take delivery and store some barrels in my garage? lol

Submitted by scaredyclassic on April 20, 2020 - 12:32pm.

It is dirty and hard to clean. Maybe it is worth less than zero.

Still, buying and holding USO seems like a possible strategy. I think.

Can an ETF go negative. And call u up for more $.

I would not buy USO.

Seriously, oil futures, uso, this shit is complicated, buying uso is not a direct bet.

Submitted by Coronita on April 20, 2020 - 1:01pm.

This is awesome. Gas prices are also floored. I'm wondering when refined motor oil is going to tank too.

Crude oil is like -$33/barrel now. Lol.

Submitted by The-Shoveler on April 20, 2020 - 1:17pm.

Yea there is a cost to hold USO, she only bought a little.

I think there are better ways but IMO Oil will rebound at some point.

This is just one of those times when the world went crazy with policy etc.. and mis-priced things IMO.

Submitted by scaredyclassic on April 20, 2020 - 2:14pm.

https://seekingalpha.com/article/4338311...

i dont know, but ive read things like this on other etfs; it's not just the cost of the etf. . this is not a simple bet. you can appear to win and lose. it doesn't always track.

better to just buy barrels of oil, probably

Submitted by Coronita on April 20, 2020 - 2:27pm.

I want to sell some of my gold bullion and exchange it for barrels of oil....

It's pretty amazing. One ounce American Eagle that was once $1100 is now over $1700 and can buy a shitload of barrels of crude oil..

Gold is nothing more than bling bling. It really doesn't have that much utility except for some reasons, humans have assigned a remarkable value to it. Crude oil, on the other hand, is actually something useful....Without it, you can't power machines to mine everything else, like gold....

I wonder how much it costs to rent a public storage locker....There's probably a hazmat issue doing that though.

The other problem is, I can't find a local dealer that is still open to sell the gold coins, lol....

Submitted by scaredyclassic on April 20, 2020 - 2:55pm.

Coronita wrote:
I want to sell some of my gold bullion and exchange it for barrels of oil....

It's pretty amazing. One ounce American Eagle that was once $1100 is now over $1700 and can buy a shitload of barrels of crude oil..

Gold is nothing more than bling bling. It really doesn't have that much utility except for some reasons, humans have assigned a remarkable value to it. Crude oil, on the other hand, is actually something useful....Without it, you can't power machines to mine everything else, like gold....

I wonder how much it costs to rent a public storage locker....There's probably a hazmat issue doing that though.

The other problem is, I can't find a local dealer that is still open to sell the gold coins, lol....

1100?

hell, the price of gold was $270.00 just 20 years ago.

As for it being useless bling bling, you could use it as money during biblical times and in every civilized society that has ever existed on planet earth for thousands of years.

so it's not "for some reason" that it is assigned value.

it had value way before the DJIA was a glint in some capitalist's eye, it will have value for the remainder of the current world order (of that i am certain, as certain i am that I exist) and if the world descends into some true post-apocalyptic hellscape, it will STILL have value.

i absolutely guarantee it.

no one will throw gold away with their old useless paper money or 401k statements of defunct corps.

it certainly would seem it has way more objective value than the wallet full of paper you carry around, esp if the gov. throws a few more trillion of those papers into the system next week. another thousand trillion of stimulus. sure. why not...

is it a good bet going forward? I have no idea. but the idea that it is "worthless" or a "barbarous relic" is just not true.

i am biased in favor of gold, sentimentally and irrationally, due to a good bet on a gold stock (a good gain on gold formed a sizeable chunk of the downpayment i made on a house in 2010,and because the timing of the purchase and the investment worked so well for me, gold melted into an irrationally soft place in my grubby little heart)), and also because it is so ancient and irritating to normal investors and contrary to growth and capitalism and modern economics.

that said, I have also been

way

way down on some gold stock price bets. it's not like im starry eyed or optimistic or always a winner. I am definitely a loser too. win some, lose some. the reason i still defend it is perhaps because it just is.

so do not take any of this as bragging or advice.

. I think people can get burned with it if they jump in and out, or invest in gold mines, and i think the upside is not huge, but i seriously doubt gold is going to fall back down to 270 an ounce.

i dont know where the floor is. My gut says 1250, and my gut is always wrong, so it's probably way lower than what my gut says, 900? 1000, 500?)? and the upside? gold bugs say 5,000, 10,000, but they're nuts, even nuttier than me.

. To me, 3,000 sounds reasonable, so the correct answer is probably 9,000, or 25,000 an ounce.

would central banks really be filling their vaults with bling? are they that vain? does money in the bank really seem all that secure? if oil can be worth negative money, why couldnt gold be worth 10k an ounce? at least youc an carry it around. try carrying or even rolling a barrel of oil.

https://www.bloomberg.com/news/articles/...

Submitted by The-Shoveler on April 20, 2020 - 2:55pm.

Gold I don't know,

Could we get into hyper-inflation?

Don't know, Seems we can't print enough LOL.

Submitted by scaredyclassic on April 20, 2020 - 3:05pm.

all that said, I agree, if you can make a good direct bet on oil prices, seems like it has to come back at some point.

Submitted by barnaby33 on April 20, 2020 - 4:49pm.

The price went wildly negative today, $-37 at one point. The problem is it's for the "front month" contract. You have to show up in Cushing Oklahoma to claim it. You'll have the same problem as everyone else though, where are you going to store it? That's what drove the price negative in the first place.
Josh

Submitted by gzz on April 20, 2020 - 4:51pm.

Coronita, I got good news for you. The paper price of gold is 1700, however the cash price for physical gold is 1800 and up. You will have no problem getting $1800 from a reputable dealer, ebay, etc.

Silver has an even larger physical premium of $3+ an ounce, though $1 is normal. Silver Eagles normally sell for $2 above spot silver, now it is $6 to $9 above.

ApMex is a large reputable seller, and they want $28 for silver eagles, and they can't even keep them in stock.

https://www.apmex.com/product/196100/202...

Submitted by svelte on April 20, 2020 - 6:47pm.

barnaby33 wrote:
The price went wildly negative today, $-37 at one point. The problem is it's for the "front month" contract. You have to show up in Cushing Oklahoma to claim it.

I lived about 20 miles from there for five years.

Submitted by Coronita on April 20, 2020 - 6:59pm.

AH! While La Jolla Coin Shop is now closed, its sister location San Diego Coin and Bullion is still open by appointment only....

http://www.sandiegocoin.com/

1 Golden Eagle must be worth at least 100 barrels of crude oil now, lol....

I remember when Apmex were selling these for $1000-$1100 just a few years ago, even better when ebay was rebating 10% with the ebay buck rewards program for coin purchases AND ebay credit card had a 2% cash back reward for charging it too. Although there was a limit on how much you eBay Bucks you could get per quarter, it wasn't a problem if you had more than one account, heh heh. Well, at least until people kept doing it and ebay finally changed their policy so that coin purchases would no longer qualify for the eBay Bucks reward program. Otherwise, it was nice to get roughly -9% below spot prices with the Bucks program + the credit card promo cash back offers combined.

See, that's how you milk the system Josh. Playing with the mortgage forbearance game is way too much effort for what you get out of it :)

Submitted by svelte on April 20, 2020 - 8:03pm.

i've never said this before in my life, but I kinda wish I owned a couple of tanker trucks right now.

Submitted by Coronita on April 20, 2020 - 8:45pm.

Hey, let's crowdsource a fleet tanker trucks paid for by members of piggington..We can find parking on our respective streets. San Diego lets you park on the street for 72 hours before you have to move it at least twenty feet. I have a very long street and I can fit at least two tanker trucks and there's no HOA, not that they can govern public street use. We get 10 or so tankers, drive it to Oklahoma to take delivery and bring it back to SD and Riverside County. The cost of.tje transportation will be less than how much we'd be paid for the negative costing barrels of oil. I don't think there are any hazmat issues of you keep the oil in the tanker trucks.

Submitted by outtamojo on April 21, 2020 - 12:14am.

No need to park. Yall can just unload the oil in the tanker vessel I gonna buy at a bankruptcy auction. As soon as I find one...

Seriously I got a bad feeling about things to come and what this could be signaling
( not that I know)

Not a good time to be led by someone who's
filed bankruptcy like six times or so.

Submitted by Coronita on April 21, 2020 - 3:45am.

I got it!!! We could drain all the water from a swimming pool and fill it up with crude oil. And then when oil is back to normal pump the oil back out from the swimming pool. The profit from the oil will more than pay for the cleanup and restoration of the swimming pool. You'll actually save some money too. Because if you have a swimming pool, you are probably paying a lot to maintain it. With crude oil in itz you no longer need to hire a pool person to do monthly maintenance. It might be a little tough to swim in it, due to the viscosity of the crude oil. Minor problem

Like a McKinsey management consultant interview question, "estimate the number of barrels of crude oil that can be emptied into the average swimming pool in SoCal".

Submitted by scaredyclassic on April 21, 2020 - 6:41am.

outtamojo wrote:
No need to park. Yall can just unload the oil in the tanker vessel I gonna buy at a bankruptcy auction. As soon as I find one...

Seriously I got a bad feeling about things to come and what this could be signaling
( not that I know)

Not a good time to be led by someone who's
filed bankruptcy like six times or so.

How does oil being negative dollars fit into a rational stock market valuation?

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