Tuesday, April 21, 2020

Energy 134, WTI crude touched below $1/barrel

All-time low oil prices today.
From the all-time high of $165/barrel in June 2008...


Today it touched near zero, 3 cents per barrel.


Producers cannot find enough storage for their excess production. Some producers in Canada are pricing negative, meaning they will even pay people to get and store their oil.

May WTI Contract Crashes To $1; Alaska, Bakken, & Edmonton All Pricing Negative
by Tyler Durden
Mon, 04/20/2020 - 12:56

The anti fossil fuel planet saviours shd be jumping with joy now, people are using very little oil, and gas and coal, their advocacy is accomplished by the China virus.

On the supply-demand oil, global demand in 2019 was 99 million barrels per day (mbpd). Projection for 2020 before the pandemic is 100-101 mbpd. With current global lockdowns and scare, demand is estimated at only around 70 mbpd. That's why the planned production cut of 20 mbpd failed to lift prices up.

These very low oil and gas prices can push oil export dependent countries like Saudi, Russia, Iran, Iraq, etc to the brink of domestic riots. Their dictatorial govts give lots of freebies to their citizens in exchange for their political obedience. Now these govts are suffering from very low oil revenues, cannot sustain the many freebies.

They should cut production by at least 25 mbpd. Big problem, who will cut by how much as they are scared of further losing their market shares abroad

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