The price of crude oil bottomed out today, with West Texas Intermediate winding up in the negative range for the first time ever. The price quoted at the time of the link was -16.20 (USD) for WTI, a benchmark crude oil.
We seem to be in a glut. I'm not sure what this means, but I doubt they'll be giving away unleaded at the pump. The combination of the price war between Russia and Saudi Arabia, in conjunction with the reduction in demand due to the Covid lockdown is wreaking havoc on both the supply and demand.
Personally, I"m ready to take a road trip. A short, four-hour round trip to take a photo of the border checkpoint on the Pendleton Bridge at the Texas/Louisiana border. I think I may do that tomorrow. I literally have nothing better to do.
3 comments:
It's bullshit. Look at June deliveries, they're about $20/bbl.
The "negative" numbers are for deliveries due Apr 30th; there is concern that there is nowhere to put the oil.
Personally, I think the bigger oil companies should just "bite the bullet" and shut in their wells in the GOM for 14-21 days. And let ZERO Saudi oil tankers unload, make them sit offshore for 30 days.
Time up stock up the National Reserve... sigh
Old NFO said...
Time up stock up the National Reserve... sigh
It's full. All most everywhere is full.
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