I have Brent (refer Bloomberg) down to $19.33 vs $69.54 a year ago.
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There are some seriously either un-informed or devious posters on this site who either
- do not read,
- if they do, they cannot understand or
- are hell-bent on creating & spreading misinformation for their own ends.
I am writing this because this forum is read and used by many newbies and inexperienced investors who deserve better.
Why do I know? Because they message me and I also know that the media reads this forum.
Let's give a balanced view and help them make proper & informed decisions. May be right or wrong but at least it's informed.
chart of brent oil , looks like a crash to me
Attachment 11375
and i expect the spread to WTI to narrow from its rather large one at the moment
also some companies are impacted on the nzx eg genesis , nzog , contact thru natural gas probably some others
Truly enormous' economic hit will push jobless to 11%, house prices down 15%: ANZ NZ
https://www.stuff.co.nz/business/121...es-down-15-anz
Comment: (Layman applying Logic) Huge oil price drop should see a big petrol price drop at the pump..In reality: maybe not..Result: Confusion!!!!
The Media should be held accountable for this confusion..Yes the media has a right to pounce on any news event, but in doing so they should educate the reader while delivering the news if it's seen to be complex and at risk of creating public confusion and a spread of misinformation...
Yes..The expiry of the May options is dramatic as it is never perceived in business that you would have to pay someone to dispose of a commodity that you recently bought...But it has happened with Oil with the expiry of the May options. I'm not sure of the history but if it has happened before it would be extremely rare.. so yes, this time the Media drama is warranted,
From the table you will notice there is a contango (when the prices for longer expiry dated options are higher than the nearer expiry dated options)..
The media dramatises the word contango to make it look like a very unusual and bad event..In the futures markets a contango is a normal situation when there is an oversupply in the market, the market displays its price/demand principles, there is nothing bad about it as the market is acting as it normally would.
Here the link to the Oil futures market price table (10 minute delay)...It has hyperlinks, have a play, click away and have fun..
PS...yes the oil price has fallen a lot... June expiry options is currently at $us 13.69