Why did US oil prices hit negative territory? I Inside Story
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- เผยแพร่เมื่อ 2 มิ.ย. 2024
- It's one of the world's most valued commodities. But coronavirus lockdowns have overturned the dominance of oil.
The worth of a barrel of U.S. oil fell to less than nothing on Monday
That's the first time in history, that the price has turned negative.
This means producers ended up paying buyers more than $30 a barrel to get oil off their hands.
It rebounded slightly to just over $2 the next day. That jaw-dropping slide is because the world has more crude than it can use.
And it is also about how much oil can be stored. Storage facilities and even ocean tankers are filling up.
Fears of not finding a place to put oil in May means nobody wants crude. That's led to a severe drop for West Texas Intermediate - a benchmark for U.S. oil.
Oil is traded on future contracts and prices for crude to be delivered in June are now at around $20.
The International benchmark for oil Brent crude also went down to its lowest in 18 years.
So, what will that mean for the U.S. and the global economy?
Presenter: Richelle Carey
Bob Cavnar, oil and energy industry expert
Cornelia Meyer, CEO of Meyer Resource and an oil and gas expert
Stephen Innes, Chief Global Market Strategist, at Axicorp,a global institutional financial services company.
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Great host and great panelists. Learned a lot from this discussion.
THANKS CORONAVIRUS👍 NOW MIDDLE EAST COUNTRIES WILL HAVE TEMPORARY PEACE.
more like thanks corona, for putting an end to the global activity of shoveling up money to the middle east. Now you guys gotta earn money by actually working.
I'm no industry expert, but the Q&A here is excellent.
USO rolls over futures from the 6th to the 10th of every month, which means they don't hold any May contracts but June contracts. And they already said that they will be changing their prospectus to hold longer-dated futures. They will be in trouble if June contracts go negative (which they very well may) or when they try to roll them forward but they had nothing to do with the May contacts going negative. That was retail customers and several funds getting margin calls.
I don't have a problem with the oil price because of I don't have a oil reserves an companies...
Just build a vast artic storage lake from Pykrete. It's so cold that the oil won't evaporate (in fact it would be almost solid!) and when you need it back you can just heat up the pipes and ship it south. 🤷🏻♂️
Storage owners charge an arm and a leg, and a pound of flesh during May contract?
My Mother recently passed. She had all her money in oil (not so much, but still) It caused a bit of excitement for my Brother who is handling her assets.
the bankruptcies of cruise ships, airlines, and small oil companies will reduce oil consumption from previous levels, reducing oil income worldwide.
"Now is a good time to buy oil", that's what all those traders that lost billions yesterday thought as well.
I think he might have meant consumers.
May 2020 WTI contract closed out at 9.06 per barrel. That means gas prices at the pump will be half of what they are now.
The more I hear about this crisis the more it feels like a message from God/the universe/nature telling us to treat each other and the environment better because we are all the same and we all need this earth to survive. This pandemic will last as long as we don't learn our lesson or at least the lesson that is trying to be taught. Covid-19 is the great equalizer
COVID WILL NOT LEAVE US UNTIL ALL OF US BECOME HUMBLE HUMAN BEINGS. SEE USA NOW, THEY AFRAID THE SHADOW OF DEATH
I found Trump downplayed everything at the first stage, downplayed the virus, now downplayed the oil price plunge.
Jonney Jun Mu orange man bad ? 😂😂😂
To recap, in a month, price at the pump is going to drop significantly, then as we come out of the pandemic and life goes back to a new normal, demand will accelerate, but pumping back oil to match the demand will take considerable time, and oil at the pump will reach new heights, again. Still a good idea to get those solar panels and that hybrid car.
Going for full EV.
@richard mccann Not really sure where this came from but ummm. I used to be a nuclear operative. Yes I don't like the fission industry as it is and accidents do occur. My real reason for not been a fan of the industry is economics, it's just to dam expensive. Renewables are the way to go, maybe in the future something like fusion will come but for now nope.
How can anyone ever go long oil now with the fear that their oil contract can go negative. Heck, the June contract just went down to 6.50. Never expected it to drop from $24 to $6.50 in one day.
@Hello Parture how are you doing?
nice seeing just 3 experts agreeing on everything
Nice video!
The market probably wants to tell us that we could go to the gas station and have free gas and money very soon
What people forget is that it is the government taxes and excises duties that determines the price of oil at the pump. Its the governments revenue and cash cow.
Next thing to go bang is the petrodollar
"hahaha! We we we, we do this all the time, boom and bust haha..."
Waay too cavalier about ruining the planet for nothing imho
And never even been to an oil well or picked up a shovel in her life....
Australian govt required the entire surplus.
God Bless America!
LOL , " What does it mean for the shale industry?" oh , right...., yeah their fracked for sure!
Mark my comment
USA will wage a war to overcome this problem
Military or economic
Bhai kitna baisa tumara ba?
I feel that there may be an adjustment in the global economy, I think that after all is said and done one would be committing economic suicide by waging a military war anywhere especially in the South China Sea (which is a hotspot).. That is a major problem area and that will take Oil, Guns and Trillions of dollars to settle that one. China doesn't have the capability for that (militarily) . I would be curious to know how much oil they are stocking up if any.
War over 1 month’s price collapse?? Did you pay any attention to the video??
I think us will wage war in the middle east more than ever after this virus downturn to keep oil price as high as posible
It means when you go to a gas station fo fill your tank .not only free gas, the owner actually handed over money to you .
Haha
I find it interesting that two major points were overlooked. One is the number of people who won't be adding to the consumption/ production equation because they are dead and the percentage of the market this represents globally. The other is certain countries (like Germany) have accelerated the ban on burning fossil fuels in the vacuum created by the virus and this is part of the consumer market that will never return.
Germany is scrapping nuclear, especially now after the fires in the Chernobyl Exclusion Zone rereleased radioactive particles into the air. A slower process, yes, but it is happening. There has been major improvements in wind generation allowing for smaller, more powerful turbines that are easily mounted to (sub)urban roof structures. We are following suit at our office in our city in the States.
In other news, lack of demand has hurt anyone sitting on rivers of oil, .....things that are now seeing much better days.....actual rivers !!!!!!!!!!!!!!
Trust the man in the suit to see the ETF problem.. weldone.. Gold star for you..
20:48 How many would? :)
So when will gas prices be -1.55 at the pump?
Lol. Never.
So can someone tell me Why the Fiat US dollar still hasn't tanked yet? Nixon tied the dollar to Oil in '71
20:51 I feel kinda bad about it. But that made me laugh
This is good news. It's a great time to get alternatives to oil infrastructure in place & meet our environmental & carbon emissions targets. No more messing with nature.
Actually why? Oil is so cheap those alternatives are now waaaaayyyyy too expensive...They are only viable when oil is expensive...
If I could I would have a electric car/solar panels/ heat pump to reduce my dependence on oil.
You wanna make a bet
I'm jumping on a plane and train once they open
Jimie Carter was as wrong then as Al Gore is now! Boom!
There should be a minimum price agreement !
1980s.. What was the peak oil hysteria about!
1. The 'experts' always predict doom and gloom. They did it in 2008 and yet prices had bounced back.
2. There is a lot of buzz about renewable energy but truth is they are far off.
The electric cars are yet to be a thing and supply of lithium will limit their production.
Most of the present renewable technology is not exactly clean.
3. Our whole technological progress is oil based. We use plastics and million different uses of oil.
So oil is not going away anytime soon. Oil industry knows it and that is why they are drilling new areas everyday.
ELECTRIC CARS AND HIGH SPEED RAIL WILL KILL OIL ANYWAY.
How fast does an electric car charge? You think people gonna leave oil for electric cars that takes hours to charge.
Time to fill up and take a long drive. 🚘🚗🚘🚘🚗
Send me 30000 barrels please, I need a $1million for petty cash
I'm interested in the future of Petro Dollar - is it going to speed it up?
Speed up the end of it hopefully.
I should built a dam to keep the oil when i had the chance i think im gonna be a trillionaire😀
Buzz Aldrin my thoughts exactly!
in india petrol and diesel price is more then other countries why
turn off this advert
Rasputin is in serious trouble.
what would be an amazing week is if it turned out saudi arabia had short positions on these futures contracts!
People Ain't getting no cheap oil .
SO MUCH FOR THE BOOM IN NORTH DAKOTA
The Bangkok guy say thing fast, but I dont understand....What for ?
Price still the same
It takes 1 1/2 month to 2 month to reflect at the pump.
And opec+also will comedown to negative tommorow,just watch,baby
@Hello Ranjan how are you doing?
SHOULD WE EVEN BOTHER BUILDING PIPELINES
20:51 woody woodpecker
ETF/contract/settlement for layman - "casino gambling Bets"
Yellow Vest stop protesting now
OGDC must reshuffle policies towards saving Oil reserves at this golden opportunity rather than to pursue OPEP or depending with ARAB Leagues for Oil Purchase with their manipulation, this opportunity will make save Pakistani Economies in an upcoming critical situation as She (Pakistani Govt) are deeply escalating upon Indian Borders Wars in next 2021-2023.
Let's drive less and invest in non-fossil fuel energies so that there is some use of gas but we are not so reliant on it. I would love to see some electro magnetic monorails across the country. I love how clean the sky is now that people are not driving everywhere and it great to not hear the jets from the nearby navy base all the time.
Index Orgenization ™
Can it go down further so that colonial relics that are built around oil lyk Nigeria can quietly split? High oil prices have had only the Brits, Fula and Yoruba enjoying the oil from the Biafran region. Let us go our separate ways and stop pretending. We are incompatible.
What goes around comes around. May be this is lesson to man kind going over board
@Hello Jack how are you doing?
NWO: where the price of toilet paper is greater than oil.
I'll swap your gold for my toilet paper 🚽....ten bars for ten rolls 😑
Who is suffering more THE WEST OR EAST?
I see the anticrist on the horizon
Haha can't understand Trump when he speaks general politics, but he's a poet addressing business politics 😅😅😅 he's better off as a senator of business economics than a president..
Ok
Good news, make the elites poor again
Trump story continues..., Even I too done a video on this explanation in detail.., hope it helps 🙏
- Surya Speak ❤️
You going to loose 800 rivers of oill
And it going to driy up like cole and rear Wat this
Wit mike. Ponpay sind the top to explain the juwes in livboun ana kaxhmeae
Enough with oil! Let's start getting rid of it for making our air more breatable
Electric cars will be my next purchase and the greedy oil producers that last July were charging over $ 150 a barrel and predicting even $ 200 a barrel. The greedy oil
producers enjoying for too long separating the money from you and many of the becoming
very rich.
Only happens When America is great again under Trump
Affordable Electric cars. Whots oil
Oddly enough it was not mentioned in this debate.
Yes thervgou to sweat and tozion in
The aie goin to form a bad
Why aljazira hate trump & MBS is there any thing underground discussion >/
One is the killer another is after money,i dont love them either.
Interviewer fr Al J looks to me to be naive, too immature, too lay a person. Lack of knowledge in area.
China ended up having the most oil reserve in the world without having any oil fields.
Time to leave the oil in the ground. The demand of hydrocarbons should Not recover.
An oil glut is an ideal time to invest in the Green New Deal.
With oil prices this low , what would be the point to invest in the Green New Deal . It would be cheaper fill up a car with gasoline then to charge up a electric car . Thank God your not running the government , because your ideas would be a disaster .
@@shanewilson8728 Very short sighted of you.
gas is cheap now so we can get out of town, yay. Study the natural world and wild life.
Trump understands the oil bonanza.
GOOD AFTERNOON LADIES