• About us
  • Donate
  • WADR
  • Contact us
  • Live Stream
Sunday, June 8, 2025
Loud Silence News
Advertisement
  • Ghana News
    • General News
    • Business
    • Education
    • Opinion
  • US News
    • Business
    • Health
    • Human Interest Stories
    • Politics
    • Education
  • Africa News
    • Business
    • Education
    • Health
    • Politics
  • ShowBiz
    • Ghana ShowBiz
    • US Showbiz
    • African ShowBiz
    • World Showbiz
  • Editorials
    • People
  • World News
    • Politics
    • Business
    • Education
    • Health
  • Sports
    • Ghana Sports
    • World Sports
  • WADR
No Result
View All Result
  • Ghana News
    • General News
    • Business
    • Education
    • Opinion
  • US News
    • Business
    • Health
    • Human Interest Stories
    • Politics
    • Education
  • Africa News
    • Business
    • Education
    • Health
    • Politics
  • ShowBiz
    • Ghana ShowBiz
    • US Showbiz
    • African ShowBiz
    • World Showbiz
  • Editorials
    • People
  • World News
    • Politics
    • Business
    • Education
    • Health
  • Sports
    • Ghana Sports
    • World Sports
  • WADR
No Result
View All Result
Loud Silence News
No Result
View All Result
Home US News Human Interest Stories

Oil price still below zero as turmoil persists

Loud Silence Staff by Loud Silence Staff
April 21, 2020
in Human Interest Stories
0
Oil price still below zero as turmoil persists
4
SHARES
22
VIEWS
Share on FacebookShare on TwitterShare on WhatsApp

[ad_1]

Oil pumps

Image copyright
Getty Images

Negative oil prices on Monday were a “quirk”, says one market expert.

You might also like

Coronavirus: How India’s lockdown sparked a debate over maids

Coronavirus: Can live-streaming save China’s economy?

Coronavirus: How long does it take to recover?

The price of US oil – which slumped to minus $37 at one point – was produced by a trading deadline and is now back close to a positive figure.

The UK oil price has been hit too, but the price of a barrel of Brent crude is now at about $23.

“Yesterday’s price action is best understood as a quirk or peculiarity of futures trading,” said analyst James Trafford of Fidelity International.

He reckons the unprecedented price movement confirms that near-term demand is very weak.

“But it isn’t cataclysmic,” he said. “We don’t see negative oil prices as a new normal, going forward.”

Oil prices have weakened sharply because of a combination of oversupply and a collapse in global demand due to the decline in economic activity cased by coronavirus lockdown measures.

What happened?

The price of oil that we see reported is actually the future price of oil. Futures are essentially contracts to deliver the physical commodity at a later date.

So when we look at oil prices, we are actually seeing the market price for future months.

As the delivery date approaches, these contracts need to be rolled over to the subsequent period.

The price of a barrel of West Texas Intermediate (WTI), the benchmark for US oil, fell into negative territory for the first time in history on Monday.

But that only related to the May contract, which was about to expire.

Traders holding the contract were unable to find buyers, because no one with the ability to take delivery wanted it.

“Nobody wants to take delivery of oil next month because there’s nowhere to store it, so the price dropped below zero,” explained Rachel Winter, associate investment director at Killik & Co.

Does that mean oil prices will fall further?

“Oil prices and associated equities in the sector will remain broadly weak over the near term,” predicted James Trafford.

He said the supply cuts recently agreed by the Opec group of oil-producing economies were not likely to be sufficient to balance the market any time soon.

Opec is believed to be looking to cut oil output immediately, rather than waiting until next month, to ease the pressure on price.

“The kind of dislocation witnessed on Monday, however much some may downplay it, points to a fundamental problem in oil markets, namely a lack of storage capacity and demand,” said Neil Wilson, senior market analyst at Markets.com.

“But it also shows the market trying to do its job, forcing the price down enough to shut production.”

Artur Baluszynski, head of research at Henderson Rowe, agreed that the effect was temporary, but warned of its implications.

“While Monday’s negative WTI futures price might have been a one-off glitch, it does confirm there is trouble ahead,” he said.

“The Covid-19 crisis is destroying the global demand for energy and without a timeline on the end of the lockdown in the developed world, the market is suffering from chronic oversupply.”

[ad_2]

This content first appear on bbcnews

Previous Post

WATCH | Cape Town women band together to sew masks to put food on table amid lockdown

Next Post

Top Democrats urge Justice Department internal watchdog to investigate AG William Barr

Loud Silence Staff

Loud Silence Staff

Related Posts

Coronavirus: How India’s lockdown sparked a debate over maids
Human Interest Stories

Coronavirus: How India’s lockdown sparked a debate over maids

by Loud Silence Staff
May 6, 2020
Coronavirus: Can live-streaming save China’s economy?
Human Interest Stories

Coronavirus: Can live-streaming save China’s economy?

by Loud Silence Staff
May 6, 2020
Coronavirus: How long does it take to recover?
Human Interest Stories

Coronavirus: How long does it take to recover?

by Loud Silence Staff
May 5, 2020
Coronavirus: White House plans to disband virus task force
Human Interest Stories

Coronavirus: White House plans to disband virus task force

by Loud Silence Staff
May 5, 2020
IS militants step up attacks on Iraqi security forces
Human Interest Stories

IS militants step up attacks on Iraqi security forces

by Loud Silence Staff
May 5, 2020
Next Post
Top Democrats urge Justice Department internal watchdog to investigate AG William Barr

Top Democrats urge Justice Department internal watchdog to investigate AG William Barr

Recommended

Penguin Meets Up With Orangutan During Excursion In Empty San Diego Zoo

Penguin Meets Up With Orangutan During Excursion In Empty San Diego Zoo

May 1, 2020
CIA warned employees against Trump’s wonder drug

CIA warned employees against Trump’s wonder drug

April 14, 2020

Categories

  • African Business
  • African Education
  • African Health
  • African News
  • African Politics
  • African ShowBiz
  • Education
  • Ghana Business
  • Ghana News
  • Ghana ShowBiz
  • Ghana Sports
  • Human Interest Stories
  • News
  • Opinion
  • People
  • ShowBiz
  • Social Trends
  • US Business
  • US Education
  • US Health
  • US News
  • US Politics
  • US Showbiz
  • WADR
  • World Business
  • World News
  • World Politics
  • World Showbiz
  • World Sports

Don't miss it

President Mahama Unveils 24-Hour Economy Plan, Set to roll out in July
Ghana News

President Mahama Unveils 24-Hour Economy Plan, Set to roll out in July

May 28, 2025
Unmasking the Propaganda Machine: The Coordinated Smear Campaign Against Dr. Anne Sansa Daly
Ghana News

Ghana’s Medical and Dental Council Clarifies Stance on Dr. Anne Sansa Daly’s Certification

May 26, 2025
Nii Armah Amarteifio Apologizes to Dr. Daly
Ghana News

Nii Armah Amarteifio Apologizes to Dr. Daly

May 24, 2025
Unmasking the Propaganda Machine: The Coordinated Smear Campaign Against Dr. Anne Sansa Daly
Ghana News

Unmasking the Propaganda Machine: The Coordinated Smear Campaign Against Dr. Anne Sansa Daly

May 23, 2025
Legal Notice: Demand for Retraction of Defamatory Publication
Ghana News

Legal Notice: Demand for Retraction of Defamatory Publication

May 23, 2025
Legal Notice: Demand for Retraction of Defamatory Publication
Ghana News

Legal Notice: Demand for Retraction of Defamatory Publication

May 23, 2025

About Us

LOGO

Loud Silence Radio & TV Network and is a multi media production company focusing on Ghanaian and African news.

Contact

  • Alexandria, Virginia, USA
  • +1 212-602-9641
  • loudsilenceradio@gmail.com
Facebook Twitter Youtube Linkedin

Download App

google play store

© 2021 Loud Silence Media. All rights reserved.

  • About us
  • Contact us
  • Donate
  • Live Stream
  • Privacy Policy
  • Terms of Use
Menu
  • About us
  • Contact us
  • Donate
  • Live Stream
  • Privacy Policy
  • Terms of Use
No Result
View All Result
  • Ghana News
    • General News
    • Business
    • Education
    • Opinion
  • US News
    • Business
    • Health
    • Human Interest Stories
    • Politics
    • Education
  • Africa News
    • Business
    • Education
    • Health
    • Politics
  • ShowBiz
    • Ghana ShowBiz
    • US Showbiz
    • African ShowBiz
    • World Showbiz
  • Editorials
    • People
  • World News
    • Politics
    • Business
    • Education
    • Health
  • Sports
    • Ghana Sports
    • World Sports
  • WADR
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.