“This is just the beginning”: media reports of a collapse in oil prices to minus $ 40 per barrel


World media comment on the largest ever collapse in world oil prices, agreeing in general that an unprecedented catastrophe has occurred. Particular attention is focused on the United States, which is both the largest producer and consumer of this raw material.


Recall that on the night of April 21, Moscow time, futures for oil of the Texas brand WTI reached negative values ​​of minus $ 40 per barrel. That is, the seller was ready to pay extra to the buyer.

Brittanya Financial Times writes that although shale Technology turned the USA into a major player in the extraction of black gold, which America used in its foreign policy, now these glorious days are a thing of the past. Forecasts are also not encouraging.

Stephen Shork, Oil Market Newsletter Editor The schork report, expects that the places in the US oil storage facilities will be exhausted within two weeks, and warned that the decline in consumption of raw materials in the country is accelerating

- reports the British business publication.

The expert added that the sharply rising unemployment rate means that fewer and fewer Americans will use their cars, which will lead to a decrease in gas demand even in the summer vacation months.

State of concern economics intensified by the growing confrontation between the US president and state governors over whether the authorities can begin to remove restrictions on movement and opening a business. World oil prices are expected to begin to recover in the second half of the year, as severe travel restrictions to curb the spread of the virus will be lifted, which will increase fuel demand.

- writes the British newspaper The Guardian.

Has touched and The New York Times. The newspaper believes that the reduction in oil production, which went to Saudi Arabia, Russia and other exporting countries, is not sufficient in conditions of an unprecedented drop in demand.

Similarly, the newspaper evaluates the situation. Gulf News from the United Arab Emirates.

Analysts say the agreement between OPEC and its partners to reduce production had only a small impact on prices. However, billions of people still remain at home, which means that fuel demand will remain low.

- the newspaper gives its assessment of what is happening.

Authoritative American resource Political also could not ignore the collapse of quotes.

For decades, American politicians have made every effort so that the shock from stopping oil supplies, which damaged the US economy in the seventies, does not happen again - and they created a national reserve. But due to the fact that at the end of last year, oil production in the United States reached record levels, and storage tanks are now filled to capacity, Washington has few tools to raise oil prices to levels necessary to maintain the industry

- noted in an analytical article.

Thus, the collapse of oil quotes - this is only the beginning. In the coming weeks, analysts expect further deterioration in the energy market.
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  1. T. Henks Offline
    T. Henks (Igor) April 21 2020 09: 15
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    Well, right, small children! Open Day at Madhouse on Thursdays. Exchange of candy wrappers in the "Monopoly". Barrels of oil on Fridays. At noon, gentlemen drink and have a snack. While everything is going according to plan.
  2. T. Henks Offline
    T. Henks (Igor) April 21 2020 09: 38
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    WTI 21 goes, Brent 24,5. Well zhurnalyugi and breshet!
    1. Bakht Offline
      Bakht (Bakhtiyar) April 21 2020 09: 45
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      In fact, WTI is now at $ 0,14. 100% increase wink

      1. Bakht Offline
        Bakht (Bakhtiyar) April 21 2020 10: 13
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        To complete the picture. WTI is currently trading near zero. Expectations (!) Of investors are very optimistic. But will they come true?


        In October, as much as 30 dollars. Would live to October ...
        1. T. Henks Offline
          T. Henks (Igor) April 21 2020 10: 30
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          Unfortunately, I can’t insert pictures from this gadget. Doesn't like the android site. But the replica with nimex says something different. 21,1. And futures also do not lie.
          1. Bakht Offline
            Bakht (Bakhtiyar) April 21 2020 10: 33
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            This is for different months. 21 dollars is futures for June. If you look at October, then $ 30. But these are the expectations. The real price for this minute is about zero.
            Here is a link to NYMEX

            https://www.cmegroup.com/trading/why-futures/welcome-to-nymex-wti-light-sweet-crude-oil-futures.html

            JUNE 2020 price - $ 20,50
            But we are talking about the price for May and at the moment. What will happen in June is still unknown. These are just price expectations.
            1. Bakht Offline
              Bakht (Bakhtiyar) April 21 2020 10: 44
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              Interesting information. Also from NYMEX

              NYMEX WTI trades nearly 1.2 million contracts a day, with each contract equal to 1,000 barrels and valued at roughly $ 44,740. * The contract trades in increments of one cent per barrel.

              1,2 million contracts of 1 barrels each are traded per day. How much oil goes through the exchange per day? 000 billion barrels? This is all paper oil. She is not in real life.
              From the same site. To buy 1 contract, you need to pay $ 0,01 per barrel. That is, spending 10 dollars, you can buy 1000 barrels. In June, you will see whether they won or not ... Well, you really need to spend a little more on margin call. In general, with 45 bucks in your pocket, you can safely go to the oil exchange. Or in a casino.
              To the economy - the real economy - this has nothing to do.
            2. T. Henks Offline
              T. Henks (Igor) April 21 2020 10: 47
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              Yesterday I sold a few barrels of 22, sadness. The real sector does not work at these crazy prices. Oil is refined. There will be a place, still pumped up. This is fin. capital on the drum, whether or not there are living people. Oil workers will not agree with them.
  3. King3214 Offline
    King3214 (Sergius) April 21 2020 17: 34
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    The most fun will begin when most of the oil companies go bankrupt and the reserves run out. And then we’re neighing the whole world over prices with two or even three zeros per barrel ...
    1. Bakht Offline
      Bakht (Bakhtiyar) April 21 2020 22: 28
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      If you do not start production, then stocks will not run out. By the way, now, by the close of the New York Stock Exchange, prices have slightly adjusted. WTI has grown, and BRENT has dropped. And now, monthly futures look like this


      Question: if product prices can jump within a range of +/- 100% within a few hours, does it make sense to watch such a parameter as supply and demand?
  4. boriz Offline
    boriz (boriz) April 22 2020 19: 19
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    Martsinkevich said that several coincidences happened.
    - too many speculators, people unrelated to real oil, began to trade futures;
    - Since 2015, the US began to produce 2 times more oil, but the infrastructure (pipes, storage) remained at the same level;
    - the bustle began around a particular Cushing hub, which was 77% full;
    - a couple of weeks ago, the Chicago Exchange changed the rules of trade, without warning anyone in advance, including trading with negative prices;
    - sharply decreased demand for oil;
    - all possible capacities near Cushing were leased by some company that refused to accept even a glass of third-party oil;
    - April 20 trading ended in May futures.
    And here, speculators realized that if they did not throw off the futures in the near future, in May they would have to buy oil alive (they paid a certain advance when buying a futures). And they never engaged in operations with live oil, they did not want to start, but there was nowhere to put the oil on (see above), so no one bought futures from them. This is where the tantrum began and, unexpectedly for everyone, prices went negative. When the tantrum was ready to spread to the Moscow stock exchange, we stupidly stopped trading. They said that they did not know how to trade goods with a negative price and did not want to know.
    As a result, the rules were adjusted, a bunch of lawsuits are being filed on the stock exchange, for failure to notify of a change in the rules. But oil is still nowhere to go, and 40 Saudi oil tankers hang over the coast, which creates a wonderful backdrop for quotes. It seems that the Saudis sent these tankers on purpose to kill "American oil." They now still use tankers to store oil, so does it really matter to them where to hang out across the sea. And so - they will kill Amer’s oil, even shale oil. Large companies are engaged in the usual, they can hold out for some time. And shale workers are small, often family-owned companies. Bend quickly.