Buying Oil - how?

[dprimm]

Ok, so how do I get in on buying this crude that is at negative value? Where they PAY the buyer to take it?

I would love to buy 1 billion barrels and hold the paper until all this is over. Then sell. (even 10,000 barrels)

Seriously, this is crazy!

 

[sparky32]

Thats not the way it works. The problem they have is storing the oil. They are paying suppliers to take the oil because it is more expensive to store the physical product.

 

[dprimm]

But ... I will let them store it in the ground where it comes from! They don't even have to pump it yet. Just leave it alone!

 

[JettaKnight]

But ... I will let them store it in the ground where it comes from! They don't even have to pump it yet. Just leave it alone!

That's the problem - It's very tricky to restart those pumps.

 

[Old Bear]

True....sometimes it's easier/cheaper to re-drill a new well than to uncap and restart a well that has been capped.

 

[dprimm]

Anyone got a spare set of tanks? For the potential profit, I can find the ground to store it! Stupid EPA would probably have some rule about putting it in the back 40.

 

[Alpo]

You would need a fleet of tanker trucks or rail cars.

It's possible....but you have to wonder with the speed of information, hasn't somebody beat you to it?

I don't think you could show up with one semi and expect a check. Maybe..... 276 bbls of oil per large tanker. I hope you have a buddy with a tanker in Oklahoma. Doesn't look like you could afford the fuel to make a profit.

 

[hoosierdoc]

the commodity strike date is when you take delivery. it may be at a port. you buy it and then you have to go get it

 

[chocktaw2]

And then, you have to refine it.

 

[JettaKnight]

Someone bought some oil, so you could understand the process without getting your hands dirty.

https://www.npr.org/sections/money/2016/08/26/491342091/planet-money-buys-oil

 

[Kdf101]

The way markets work these days just amazes me. If I were smarter, it seems there is money to be made. Lots of these guys do it with no “real” money involved. I blame my parents for me not being smarter.

 

[AtTheMurph]

Just buy 10,000 contracts. Have your broker wire the funds to your Belizian bank account and get there ASAP.

When they come to deliver your 10,000,000 barrels leave a note on your door to drop it like an Amazon delivery person and you will pick it up later.