How Oil Prices Turned Negative – A Simple Explanation Description video: How Oil Prices Turned Negative – A Simple Explanation. How did oil prices turn negative? What is negative pricing? Will negative oil prices affect petrol? Why did oil prices […]
How Oil Prices Turned Negative – A Simple Explanation
How Oil Prices Turned Negative – A Simple Explanation. How did oil prices turn negative? What is negative pricing? Will negative oil prices affect petrol? Why did oil prices turn negative? In this video we will explain how oil prices turned negative in 2020 and what effect they had on society in terms of storage, petrol prices and how prices fell negative for the first time in history.\n\nHere’s How It Happened.\n\n► OUR MISSION\nOn this channel, we animate stories to show you how things happened in the world of business and beyond. Our aim is to demonstrate how things happened and we believe our videos offer the accessible platform to make learning through video a fun and easy experience for everyone. \n\n► HOW WE MAKE OUR VIDEOS:\nOur Favourite Microphone for Crisp Audio: https://amzn.to/3nwPpvH\nOur Laptop for easy editing: https://amzn.to/3nAOsCn\nOur favourite headphones to get in the zone: https://amzn.to/3nsZMkb\n\n► FTC Legal Disclaimer – Some links found in the description box of our videos may be affiliate links, meaning we may receive a small commission on sales you make through the link. This is at no extra cost to you to use our links/codes: it’s just one more way to support us and our channel! :)\n\n#negativeoilprices\n#negativepricing\n#howoilturnednegative\n#whydidoilturnnegative\n#oil\n#howithappened
The price of American oil returned from the negative zone
US oil prices return to positive territory after historic fall below zero.
US West Texas Intermediate (WTI) crude oil for May delivery rose $ 38.99 to $ 1.36 a barrel on Tuesday, after falling $ 37.63 a barrel in the previous session..
Brent crude for June delivery fell 48 cents, or 1.9%, to $ 25.09 a barrel.
«Lack of demand for black gold due to ongoing pandemic will lead to slower-than-expected growth in the US economy», – considers Edward Moya, Senior Market Analyst, OANDA Broker.
The collapse of oil prices is due to travel and flight restrictions around the world. Fuel demand decreased by 30%. This led to an increase in crude oil reserves and the problems of finding new storage locations..
The main US warehouse hub in Oklahoma is expected to be full in the next few weeks.
After the collapse in oil prices, the President of the United States Donald Trump said his administration is considering ending imports of crude oil from Saudi Arabia as a way to help the US drilling industry.
«It is pretty clear today that the main problem in the market is the surplus of raw materials in the US and the lack of storage resources.», – believes Michael McCarthy, Chief Markets Strategist at CMC Markets in Sydney.
Faced with such a situation, OPEC + members agreed to cut production by 9.7 million barrels per day. However, this will not happen until May. At the same time, the volume of reduction is not considered by experts as large enough to restore the market balance.
Meanwhile, U.S. crude oil inventories were set to rise by about 16.1 million barrels in a week.. Analysts had expected gasoline inventories to rise by 3.7 million barrels last week.
The American Petroleum Institute (API) plans to publish its data today, and the US Energy Information Administration’s weekly report will be released on April 22.