Last Monday we warned that oil prices could turn negative. That evening they did just that, with the main US domestic grade WTI trading as low as -$40/bbl for the May contract (sellers were paying buyers to take the oil). There were very specific circumstances surrounding that price move: the May contract was expiring thatContinue reading “After oil at -$40, what next?”
Tag Archives: WTI
Prospects for the recovery of the global oil market
On January 1, Brent crude oil was trading above $66/bbl. Three months later, it had fallen by more than 60% from that level. A coronavirus-driven decline was followed by a collapse when the three-year old agreement between OPEC and Russia to cut production and raise prices broke down. The root cause was a three-way tussleContinue reading “Prospects for the recovery of the global oil market”
Oil price declines and the impact on China’s energy complex
Oil prices have been steadily declining in recent weeks as the impact of the coronavirus on energy demand in China and the rest of the world has become evident. This slide accelerated significantly at the beginning of this week when Russia decided to end its cooperation with OPEC on reducing world oil production, which hadContinue reading “Oil price declines and the impact on China’s energy complex”
Global Energy Comment 