US Current Oil Price Below Zero For First Time In History

0

Historic 300% Oil Price Crash

IHS Markit said in its latest “Offshore Offshore Monthly” analysis on Monday that as the company is reevaluating drilling plans and canceling or suspending offshore contracts.

the offshore drilling market will become one of the hardest-hit areas where oil prices plummet and demand collapses.

It is expected that in the coming months, as oil prices plummet and the economic crisis hits twice,

current-oil-prices

large and small exploration and production (E & P) companies are eager to reduce capital expenditures (capital expenditures), and the demand for offshore supply vessels (OSV) will be hit.

Richard Sanchez, a senior marine analyst at IHS Markit, said Monday that the coronavirus is pandemic.

WTI Crude Oil Price History

Brent Crude Oil Price History

Oil Price Commodity Chart


Phil Flynn, an analyst at Price Futures Group in Chicago, said: “Insufficient inventory prevents speculators from buying the contract, and the refinery’s inventory is low because we have not filed 24/7 orders in most states.” “People have little hope that everything will change within 24 hours.”

The physical demand for crude oil has dried up, resulting in a global oversupply, leaving billions of people at home to slow the spread of the new coronavirus.

Refineries process much less crude oil than normal, so hundreds of millions of barrels of storage equipment are pouring in worldwide. The trader leased the boat just to anchor it and fill it with excess oil. A record 160 million barrels are sitting in tankers around the world.

Market analysts quoted Genscape ’s report on Monday that as of the week of April 17, Cushing ’s U.S. crude oil inventories increased by 9% to a total of about 61 million barrels.

In June, WTI contract transactions were more active, with a settlement price higher than $ 20.43 per barrel. The spread between May and June was once widened to $ 60.76, the two closest monthly contracts in history.

Since the price of US oil is in the negative region, this means that the seller must pay the buyer the cost of buying oil futures for the first time. However, it is unclear whether this will affect consumers, who usually see lower oil prices translate into lower gasoline prices.

John Kilduff, a partner at Again Capital LLC, a New York hedge fund, said: “Usually, this will stimulate the global economy.” “Usually, a 2% increase in GDP would be good. You don’t see savings because you don’t People spend on fuel. “

Last Updated on

LEAVE A REPLY

Please enter your comment!
Please enter your name here