Posted on 03/18/2020 12:12:24 PM PDT by 11th_VA
Plunging oil prices could be headed a lot lower – possibly below zero, according to one Wall Street analyst.
West Texas Intermediate crude oil, the U.S. benchmark, fell by more than 10 percent Wednesday to near $24 a barrel, a level last seen in April 2002.
“Oil prices can go negative,” wrote Paul Sankey, managing director at Mizuho Securities.
If that weren't enough, Saudi Arabia recently slashed oil prices and raised output after Russia refused to join OPEC in deepening production cuts.
Oil is a 100 million barrel-per-day market, but Sankey says it’s possible that the economic fallout from the pandemic could zap demand, creating a 20 million barrel-per-day surplus.
He says the “physical reality” of the market is that oil is pumped out of the ground and has to be consumed or stored. When the cost of storage goes high enough -- or space runs out -- companies might pay customers to take it...
(Excerpt) Read more at google.com ...
And gas will still be $3.50 a gallon here in Commiefornia.
They’ll be paying me to fill up my gas tank!
LOL
This silly article likely marks the inflection point for oil.
I'm in...
I’ll take a billion barrels. No make that 10 billion. Can I put that on my VISA?
Silly season has officially arrived.
The person who wrote that is taken seriously as either an economist or journalist? Seriously?
I wonder if I short $1.00 for oil, if it would go to infinity? Funny things happen around zero
And giving you a brand new car
Buy Buy Buy for our reserves. This opportunity may never come again.
You won’t have to put it on your Visa; they’ll pay you to take it off their hands.
But...Goldman Sachs assured us a while back that Oil would be $200 per barrel???
I’m beginning to think that everyone is a liar....and maybe, just maybe...the media isn’t honest either...Oh the humanity!
Woohoo!!!
I need a couple of SUV’s with 4x4!
So I can fill them up with paper sacks from the grocery store with TP and hand sanitizer!
Maybe that’s why the pump I was at yesterday went to super slow mode. Hoping to keep me there until prices rebounded.
Negative? They would pay you to take oil?
Oh Hell..Its WAAAAYYY beyond that now.
They’re going to pay us to get gas?
I’m in!
Regardless of how silly this article is written, oil/gas prices are falling. Betcha this just irks the hell out of AOC and the likes. This nutjob wants to eliminate oil when it’s practically free - LOL.
It’s still 2.85 in North Phoenix
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