Friday, March 27, 2020

Oil Price - What Happens If Oil Prices Go Negative?

Various reports hit the news feeds today quoting a deliberately headline-grabbing statement by Paul Sankey, managing director at Mizuho Securities, in which he is reported as saying, “Oil prices can go negative.” That is, they could as a combination of Saudi Arabia (and Russia) flooding the market with increased oil and the market running headlong into COVID-19-induced curtailment of activity that is suppressing consumption, which combined will create the perfect storm of excess supply.

https://oilprice.com/Energy/Energy-General/What-Happens-If-Oil-Prices-Go-Negative.html

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