It is one of many world’s most valued commodities. However coronavirus lockdowns have overturned the dominance of oil.
The value of a barrel of U.S. oil fell to lower than nothing on Monday
That is the primary time in historical past, that the value has turned negative.
This implies producers ended up paying consumers greater than $30 a barrel to get oil off their arms.
It rebounded barely to only over $2 the following day. That jaw-dropping slide is as a result of the world has extra crude than it could use.
And it is usually about how a lot oil will be saved. Storage services and even ocean tankers are filling up.
Fears of not discovering a spot to place oil in Could means no one needs crude. That is led to a extreme drop for West Texas Intermediate – a benchmark for U.S. oil.
Oil is traded on future contracts and prices for crude to be delivered in June at the moment are at round $20.
The Worldwide benchmark for oil Brent crude additionally went all the way down to its lowest in 18 years.
So, what’s going to that imply for the U.S. and the worldwide financial system?
Presenter: Richelle Carey
Bob Cavnar, oil and vitality trade professional
Cornelia Meyer, CEO of Meyer Useful resource and an oil and fuel professional
Stephen Innes, Chief International Market Strategist, at Axicorp,a world institutional monetary providers firm.
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