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 ...
That’s good.
I also live in Jefferson
My son has the t-shirt...
Wife says $2.13 in LaPlata.
Glad to hear it. The time has come for 51.
Bkmrk
I think article is 14 days early...
Two bucks or more a gallon the .009 is just a math exercise.
Uh, no.
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