Tuesday 21 April 2020
Oil drops below $0, signaling extreme collapse in demand
The price of oil on Monday tumbled into negative value. In theory, it means that sellers would have to pay buyers $40 or more just to take a barrel off their hands. It's symbolic, more than anything. It won’t have much effect on the price of gasoline at the pump.
However, this shows how much the Coronavirus Covid-19 Pandemic has crushed the world’s energy markets. The idea that a barrel of oil could be worth less than zero was a shock to many people.
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Here is an article that explains How Oil Prices Could Go To $100
ReplyDeleteOil prices certainly went negative recently. The West Texas Crude Intermediate benchmark plummeted to previously unimaginable depths, closing that day at negative $37.63 per barrel.
Even though oil prices are lower than they have ever been, "one energy fund thinks $100 a barrel is achievable," reported the Midland Reporter-Telegram earlier this week.
https://oilprice.com/Energy/Oil-Prices/How-Oil-Prices-Could-Go-To-100.html