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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: Professional; timestax
[the media isn’t honest either]

No way dude!!!



(the American public has been trained, quite well, by the liberal media. /Captain Obvious)
21 posted on 03/18/2020 12:19:38 PM PDT by SaveFerris (Luke 17:28 ... as it was in the days of Lot; they did eat, they drank, they bought, they sold ......)
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To: dfwgator

Trump IS buying for our reserves.
A point he covered in one of his daily press conferences.


22 posted on 03/18/2020 12:20:02 PM PDT by Buckeye McFrog (Patrick Henry would have been an anti-vaxxer)
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To: 11th_VA

Right! Oil producers are going to pay me to put gas in my tank?


23 posted on 03/18/2020 12:20:21 PM PDT by Chgogal
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To: 11th_VA

It’s time to make preparations for deflation.


24 posted on 03/18/2020 12:21:27 PM PDT by immadashell (Save Innocent Lives - ban gun free zones)
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To: 11th_VA
What does that mean? We'll pay for oil companies to put it back in the ground?

If crude goes to 0, you can bet gas will drop at least a nickel at the pump.

25 posted on 03/18/2020 12:21:46 PM PDT by IronJack
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To: 11th_VA

Fall below zero?. So then I’ll be paid to buy gas?


26 posted on 03/18/2020 12:21:55 PM PDT by Bommer (I am a MAGA-Deplorian! It is the way! It is the only way!)
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To: 11th_VA

Just as I posted this, the price of oil shot up - go figure ...


27 posted on 03/18/2020 12:21:58 PM PDT by 11th_VA (May you live in interesting times - Ancient Chinese Proverb)
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To: immadashell

Put if they keep printing money won’t that create inflation?


28 posted on 03/18/2020 12:22:00 PM PDT by dfwgator (Endut! Hoch Hech!)
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To: 11th_VA

Trump needs to hurry up and expand the petroleum reserve and scoop this up at these low prices while he can.


29 posted on 03/18/2020 12:22:09 PM PDT by Uncle Sham
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To: Texas Eagle

Yep. Can’t wait for the “Progressives’” (aka Commies’) reasoning for stagnant $4/gal pricing.


30 posted on 03/18/2020 12:22:27 PM PDT by caprock
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To: 11th_VA

Economic Warfare, pure and simple.


31 posted on 03/18/2020 12:22:47 PM PDT by ImJustAnotherOkie (All I know is The I read in the papers.)
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To: immadashell
I may have to fire up the 427 dual quad 1961 Ford Starliner....
32 posted on 03/18/2020 12:22:55 PM PDT by pburgh01 (Negan all the MSM)
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To: immadashell
It’s time to make preparations for deflation.

Does that mean cash is a good thing !

33 posted on 03/18/2020 12:23:01 PM PDT by 11th_VA (May you live in interesting times - Ancient Chinese Proverb)
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To: discostu

Reminds me of that comical story of the Somali pirates who hijacked a tanker in the Indian Ocean a few years ago. The price of oil plummeted from $75 to around $30 over the course of the several weeks they held the ship for “ransom.” By the time they ran out of food and water on the ship, the owner of the ship and the owner of the cargo basically told them to go ‘eff themselves. And ‘eff themselves is what they did, if I remember correctly.


34 posted on 03/18/2020 12:23:12 PM PDT by Alberta's Child ("Oh, but it's hard to live by the rules; I never could and still never do.")
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To: 1Old Pro

Take that electric vehicle lovers.


35 posted on 03/18/2020 12:23:47 PM PDT by taterjay
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To: 11th_VA

They will pay us to buy it. And the state and fed will refund the taxes they put on it.

In your dreams.


36 posted on 03/18/2020 12:23:54 PM PDT by I want the USA back (The US media is the most destructive, mendacious irresponsible institution that there is.)
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To: 11th_VA

This is good news. They are trying to scare people into selling, guess why.


37 posted on 03/18/2020 12:25:28 PM PDT by SaxxonWoods (Epstein pulled a Carradine, the bozo.)
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To: 11th_VA

This will make St. Greta’s head explode


38 posted on 03/18/2020 12:26:12 PM PDT by shotgun
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To: 11th_VA

If we ever needed a reminder, this whole mess just reinforced the fact that China, Russia, and even the Saudis are our enemies.


39 posted on 03/18/2020 12:27:46 PM PDT by NohSpinZone (First thing we do, let's kill all the lawyers)
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To: 1Old Pro

Old Abbott and Costello skit.

Sir, the car is out of gas. Throw it away and by another with a full tank.


40 posted on 03/18/2020 12:28:00 PM PDT by headstamp 2 (There's a stairway to heaven, but there's also a highway to hell.)
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