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Oil prices could fall below zero: Analyst
Fox Business ^ | March 18, 2020

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 ...


TOPICS: Extended News; Foreign Affairs; News/Current Events
KEYWORDS: energy; hydrocarbons; maga; oilprice; opec
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To: Texas Eagle

That’s good.

I also live in Jefferson

My son has the t-shirt...


121 posted on 03/18/2020 5:45:10 PM PDT by Syncro (Facts is Facts)
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To: stockpirate

Wife says $2.13 in LaPlata.


122 posted on 03/18/2020 5:45:31 PM PDT by Palio di Siena
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To: Syncro

Glad to hear it. The time has come for 51.


123 posted on 03/18/2020 5:47:06 PM PDT by Texas Eagle (If it wasn't for double-standards, Liberals would have no standards at all -- Texas Eagle)
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Bkmrk


124 posted on 03/18/2020 6:40:59 PM PDT by snippy_about_it
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To: 11th_VA

I think article is 14 days early...


125 posted on 03/18/2020 8:15:36 PM PDT by Elsie (Heck is where people, who don't believe in Gosh, think they are not going...)
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To: PIF
That is when the X.XX9 made some sense.

Two bucks or more a gallon the .009 is just a math exercise.

126 posted on 03/19/2020 3:44:50 AM PDT by Elsie (Heck is where people, who don't believe in Gosh, think they are not going...)
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To: AdmSmith; AnonymousConservative; Arthur Wildfire! March; Berosus; Bockscar; cardinal4; ColdOne; ...
Uh, no.

127 posted on 03/25/2020 6:26:58 PM PDT by SunkenCiv (Imagine an imaginary menagerie manager imagining managing an imaginary menagerie.)
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128 posted on 03/25/2020 6:48:15 PM PDT by SunkenCiv (Imagine an imaginary menagerie manager imagining managing an imaginary menagerie.)
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