#OilCrash: Oil Is Now “Worth Less Than Nothing”

NEW DELHI: Oil price futures slipped into negative territory on Monday – a shocking oil-market first – making previous doom and gloom forecasts of OPEC’s too-little-too-late production cuts now seem like sober predictions rather than overzealous fearmongering.

WTI crude oil futures settle at -$37.63 per barrel – Down $55.90 on the day, some 305.97%#OOTT #WTI #Crude #Oil #Coronavirus $USO

— OilPrice.com (@OilandEnergy) April 20, 2020

The coronavirus pandemic has caused oil demand to drop so rapidly that the world is running out of room to store barrels — even as the US accused Russia and Saudi Arabia of flooding the world with excess supply.

President Donald Trump, however, at the same time said that the US would take advantage of the historic drop in oil prices to buy 75 million barrels to replenish the national strategic stockpile.

Fortunately, for the global community at large, the oil prices recovered some lost ground from a historic crash on Tuesday, with United States crude turning positive after trading below $0 for the first time ever.

Gains, however, were capped due to unresolved concerns about how the market can cope with an oversupply of crude as demand continues to be decimated by the coronavirus pandemic.

More soon.

from League of India