Markets Insider reports:
Oil plunged to a more than three-decade low on Monday. The commodity’s latest round of sharp selling comes as uncertainty mounts around storage for excess oil. Demand for crude has plummeted since the coronavirus outbreak has frozen activity worldwide.
The price of West Texas Intermediate crude oil futures expiring in May plunged as much as 84% to $2.99 a barrel, putting itpace for the lowest close on record, dating back to 1983. Brent crude losses were muted by comparison, with the commodity sliding 7.4% to $26 a barrel at intrasession lows.
The highest number of Saudi oil shipments in years are making their way to the United States this month, threatening to make an already dire situation in the U.S. oil industry even worse.
With oil demand crashing in the lockdown and storage capacity filling up fast, more Saudi oil imports is the last thing the U.S. oil market needs right now.
In times of lockdowns and social distancing, inventories in the U.S. are soaring, storage capacity is stretching thin in many areas, producers are idling rigs and curtailing production, and some regional grades are priced so low that they could soon turn negative.
Art of the Deal has done it again. https://t.co/0fb1q94rwc
— Schooley (@Rschooley) April 20, 2020
seriously tho didnt trump just negotiate some big deal between saudi arabia and russia last weekhttps://t.co/4nxJoHPjTT
— darth™ (@darth) April 20, 2020
Mohamed bin Salman launching an oil price war right at the beginning of the worst sudden economic downturn in history, just one of many great achievements of the 21st century’s most visionary millennial leader
— Tom Gara (@tomgara) April 20, 2020
Not a typo:
Oil prices have fallen more than 99% today on NY Merc (commodities exchange) – a historic, stunning collapse that defies even the most vivid imagination. Trump said last week he made a deal w/Russia and the Saudis to push them higher
— West Wing Reports (edited by Paul Brandus) (@WestWingReport) April 20, 2020
@realDonaldTrump A week ago you said: oil prices will go up because of my intervention between Russia and Saudi Arabia.
Okay. Now price is below $ 10. Minus $ 20 is what you need for your oil industry. What is your reaction to all those people who wlll lose their Jobs? pic.twitter.com/MiY96y36O5
— Martin Froberg MBA (@MartinFroberg) April 20, 2020