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Dbigkahunna's avatar

When the oil price in Cushing went negative, it was NOT because oil companies could not store their oil. There was a group of traders who had purchased oil contracts for delivery in Cushing, and for some reason had not secured storage to complete the buy. When you purchase the contract, when the contract for 10,000 BBL's settles, you must have space either in Cushing or on a pipeline to take delivery of that oil. Five days out, the traders saw this setting up. Three days before settlement, these traders had not secured either storage or transportation. At that point it was too late. Storage was available three days before settlement, but for whatever reason, this group did not secure it and thus were doomed to face the market. I was on a crude trading floor in Midland Texas the day this happened. The company I was with had capacity to take the oil and bid on this. The old-time oil traders could not believe anyone would be so stupid as to own a buy contract and not have storage or transportation. But by the rules, the contract had to be settled on that day.

Period!

The trading companies who had storage available started the bloodbath and the contractor owners for some reason would not sell. Early on in the day they could have settled for $0 but did not. Instead, they had to pay $37 a BBL to the winner to square their contract. On that day, the POSTED price of WTI was around $14.00 not -$37.00

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Craig Whitfield's avatar

I wanted to share an excerpt from an article written by Jeffrey Tucker. Jeffrey's a Libertarian so you don't have to suffer through any Tribal rhetoric. He offers up a possible explanation as to why the Deep State has become increasingly predatory. Whether you agree with him or not, I believe you'll find it an interesting read.

The Fix

However, the other day I ran across an interesting fact of history that could account for the unmitigated hate. Three months before Trump left office, he passed Executive Order 13957. The purpose was to create a new category of federal employment called Schedule F.

Schedule F employees could be fired by the president. They would no longer have civil service protection due to their positions as policymakers and influencers.

The executive order demanded a thorough review of all federal employees to see who would qualify. Only one agency responded in time before the election was called for Biden and concluded that it would pertain to 88% of its employees. In other words, this action would have gutted the power of the administrative state.

It would have been the biggest change to hit Washington in 100 years. Absolutely astonishing. What was Biden’s first action in office?

You guessed it. He issued a new executive order reversing this one. He saved the deep state. None of this made the news, but you can be darn sure that it was a HUGE deal in the belly of the beast. Imagine the CDC, IRS, NSA, CIA, FDA, DOJ and so on all subject to normal standards of hiring and firing.

That would have gone a very long way to ending the tyranny in America. It absolutely had to be stopped. The point is that Trump with this order raised the stakes enormously. He figured out the problem and the solution. They must never allow it to happen again.

This is why they are behaving this way, like cornered rats. They will do anything to prevent something like this.

I’ve never been one for the theory that the election was stolen, simply because I don’t have enough information to say either way. But I will say this. If there ever were an election to steal, this would have been it. The entire deep state stood on the precipice of dismemberment.

So yeah, plenty of people would have been willing to take the risk.

We live in exceedingly dangerous times, with multiple beasts on the loose looking for wealth and liberties to devour. They are proving themselves impossible to train or deter, no matter how bad it gets out there.

They really are sadistic.

Regards,

Jeffrey Tucker

for The Daily Reckoning

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