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Historic Collapse Of The Global Oil Industry, $ 1.04 a Barrel

Historic Collapse Of The Global Oil Industry, $ 1.04 a Barrel

On a day that is a difference in the history of the global oil industry, the price of a barrel of American oil witnessed a sharp decline during trading today, Monday, by more than 94%, recording the lowest level in its history, where US crude futures contracts recorded a decrease of 94% and reached the level of $ 1.04 a barrel, and this level is recorded by US West Texas Intermediate was the lowest in history.

Historic Collapse Of The Global Oil Industry, $ 1.04 a Barrel

On a day that is a difference in the history of the global oil industry, the price of a barrel of American oil witnessed a sharp decline during trading today, Monday, by more than 94%, recording the lowest level in its history, where US crude futures contracts recorded a decrease of 94% and reached the level of $ 1.04 a barrel, and this level is recorded by US West Texas Intermediate was the lowest in history.

Experts have suggested that this drop in oil prices, which have not been witnessed before, will reach the price of a barrel of oil to the dollar due to the decrease in demand for crude oil due to the pandemic of the emergence of the new Coronavirus and all American oil storage warehouses are close to fullness, as oil markets witnessed a state of economic stagnation due to the interruption of the number A large number of economic activities around the world with the emergence of the emerging coronavirus and countries implementing measures to combat this virus.

The International Monetary Fund warns that getting the world's economies into a downward spiral will be the deepest since the Great Depression of the 1930s.

Experts attribute the causes of the collapse of US crude prices in this way to the investors' fears that the crude storage centers in the Oklahoma State of America may soon deplete their storage capacity to the extent that American producers are obliged to pay money to customers in return for purchasing crude to reduce the oversupply and provide storage sites.

"The current price level crystallizes the inability of the OPEC Plus alliance to cut production to offset the recorded collapse in demand rates so that energy markets remain at the mercy of the emerging coronavirus," Bloomberg quoted Vandana Harry, founder of the Vanda Insights Group in Singapore, as saying.

The economic analyst added: Until we approach the announcement formally reopening the American economy, we may witness a further decline in oil prices or it may remain near the current levels.



Data issued by the US Energy Information Administration last week showed that the size of US stocks increased by 48% to 55 million barrels since the end of last February, noting that the storage capacity of crude storage centers accommodates 76 million barrels as a maximum until 30 of next September.

Two sources said that the Russian Energy Ministry orders domestic oil producers to cut production 20% from February levels in May and June as part of a global agreement, according to Reuters.


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