There’s Too Much Damn Oil. And Nobody Wants It.
To sell the news or not to sell the news.
That will presumably be the question later this week following a hotly-anticipated OPEC+ virtual meeting on Thursday.
Crude surged ahead of the teleconference, which by almost all accounts will ultimately produce an agreement on a large cut to stabilize prices, which plunged the most on record in the first quarter as acrimony between Riyadh and Moscow collided with the largest demand shock in history to create a crisis unlike any other.
The EIA on W
Game of chicken now on who shuts down. No other way of looking at it. Could be some environmental damage. Some of the poorer producers are in a world of trouble.A few weeks back someone mentioned the price of oil could go negative.
That famous friday all of OPEC awaited Russia and assumed they would say that they were weather constrained about reducing. Russia wanted to put US oil out of business . Perfect storm along with Corona. I thought it was a chess move by Putin to attack all overated corporates. Saudis simply did a “You too” to Russia. That was so long ago. Funny Trump did not really say something when it might have mattered. He did muscle in the night S&P500 closed below his inauguration day.
Some helicopter incentive money to convert refineries to use American oil?
Conversion of refineries takes 1 year + minimum.