Oil Prices Crash to -$36 Per Barrel, Could Combustion Powered Cars be Done For?
There are a lot of unexpected side effects that have come into play with COVID-19. In fact, there are very few industries, nationwide and worldwide, that have remained even keel with the spread of the virus. It seems like everything from entertainment to manufacturing have been forced to flip-flop a bit to accommodate the way of the world in 2020.
Could the end of gasoline-powered cars be on the horizon?
Today, we got a good look at how quarantine has brought things tumbling down for the oil industry. In times of economic hardship, sure, the price of oil is going to decline with less demand. When compounding that with the fact that everyone is staying home, the results have been much more dramatic.
In fact, oil crashed 305% to -$36.73 a barrel.
How can Oil Trade at a negative price
Right now, as we’re told, there are people who want to sell oil. On the other end, though, there is a severe lack of demand as oil production has crashed through the floor. As such, buyers are being paid to take extra oil off the market. It seems as if it becomes a matter of being able to store the excess of oil. Signs would indicate that the industry was late to cut off production and now we’re left with a massive surplus.
The oil industry has been spoiled over the past couple of years as demand hasn’t much stumbled. These days, though, obviously, we’re looking at a much different story.
It seems as if some expect a cut in production to level things back out again. However, this means job loss at refineries and other oil-related businesses.
In addition, oil prices have proven to be an indicator of certain market conditions. With the drop, the stock market hasn’t been happy, either. Down below, the folks from Fox Business shed a bit more light on the bigger picture.