Reports that the Dallas Fed has requested banks to go easy on shale oil debtors and avoid ‘mark to market’ pricing of loans is bad enough but it is now apparent that for some of lower grades (high sulphur) such as North Dakota Sour producers are not only being asked to give the oil away to refineries but are actually being charged. The crude glut is now so acute that the Koch brothers are actually charging $0.50/bbl to take low grade oil at their Flint Hills Resources refining arm. This means that actually there is no market to mark to for some oil producers. The other graph of importance is this one that speaks for itself

What happens next?

Source: What Crisis Is The Gold/Oil Ratio Predicting This Time? | Zero Hedge