Oil – An industry broken by Coronavirus
Black gold, as it was termed, was one of the most valuable and used resources, now an industry broken by the pandemic we face. The plunging demand for oil brought on by the Coronavirus pandemic coupled with a savage price war has left the fossil fuel industry broken and in survival mode, according to analysts.
Now facing its the gravest challenge in its 100-year history, analysts say, it will be one that will permanently alter the industry.
WTI oil security price resulted in a very rapid, deep, and volatile fall occurring within an extremely short time period. Some oil blends in Canada have fallen into negative territory and producers have to pay to give their barrels away. US benchmark WTI oil price closed at -$37.63/barrel in New York.
US crude prices plunged to their lowest level in history on Monday as traders continue to fret over a slump in demand due to the coronavirus pandemic. Starting at an already record low of below $5 late on Monday, the future contract prices started trading in the negative within the hour.
While WTI for May delivery was down by over 90 percent, June delivery was only down 10 percent. Brent on the other hand, which is already trading on the June contract, is down by less than 6 percent, suggesting that it is fears of U.S. storage capacity that are dragging on prices.